Land O'Lakes to Buy Purina
Dairy cooperative Land O'Lakes Inc. yesterday it would buy Purina Mills Inc. for approximately $230 million in cash.
Purina Mills would become part of Land O'Lakes Farmland Feed LLC following the acquisition. The company will add about $425 million in annual sales to Land O' Lakes' nearly $6 billion in annual sales, according to Reuters.
"We are bringing together well-recognized brands in different product categories, as well as complementary geography and product lines," said Land O'Lakes Chief Executive Jack Gherty in a statement. "We are building the economies of scale and critical mass necessary to compete nationally in the consolidating feed industry. This transaction clearly has positive implications for the long-term success of our farmer-owned feed system."
Amid a slump in sales, Purina Mills filed for Chapter 11 bankruptcy protection in 1999. It went public a year later to raise capital. Privately held agribusiness giant Cargill Inc. owns about 5 percent in the company.
Purina Mills' product lines, brands, nationwide dealer network and checkerboard trademark logo will be maintained, Land O' Lakes said in a statement. The company will continue to be based in St. Louis, with its own sales and marketing team, the report said.
Purina Mills would become part of Land O'Lakes Farmland Feed LLC following the acquisition. The company will add about $425 million in annual sales to Land O' Lakes' nearly $6 billion in annual sales, according to Reuters.
"We are bringing together well-recognized brands in different product categories, as well as complementary geography and product lines," said Land O'Lakes Chief Executive Jack Gherty in a statement. "We are building the economies of scale and critical mass necessary to compete nationally in the consolidating feed industry. This transaction clearly has positive implications for the long-term success of our farmer-owned feed system."
Amid a slump in sales, Purina Mills filed for Chapter 11 bankruptcy protection in 1999. It went public a year later to raise capital. Privately held agribusiness giant Cargill Inc. owns about 5 percent in the company.
Purina Mills' product lines, brands, nationwide dealer network and checkerboard trademark logo will be maintained, Land O' Lakes said in a statement. The company will continue to be based in St. Louis, with its own sales and marketing team, the report said.