Breaking News: Dec. 1997, J.R. Simplot Purchase; Textron Makes Offer

POST FALLS, IDAHO -Jacklin Seed, a $40 million turf seed producer best known for its bluegrass varieties, was purchased by J. R. Simplot, a $2.8 billion agribusiness company based in Boise, Idaho.

Financial details of the deal were not released, but the sale only involved the business operations. The land, buildings and machinery is still the property of the Jacklin family, but Simplot has been given a long-term lease on their use. Jacklin Seed will be treated as a separate division and is now called called Jacklin Seed, division of J. R. Simplot Co.

As an agriculture giant, Simplot is not out of its element in its acquisition of Jacklin. Its primary business is in potato growing and cattle, but it also markets fertilizer in the professional market under the Best brand name, primarily to golf courses, and has the exclusive rights to sell Polyon controlled release fertilizer west of the Mississippi River. In addition, Simplot has done some bluegrass production, using it as a rotation crop for potatoes.

Discussions about a potential deal began in August, but the relationship between the companies began about three years ago, according to Doyle Jacklin, president of the newly formed company. At that time, Simplot started growing bluegrass for Jacklin as a rotation crop for potatoes. When the deal commenced, Simplot was Jacklin’s largest single turf seed producer.

Jacklin plans to benefit from Simplot’s land holdings in overseas markets, giving them greater ability to grow bluegrass to sell in the Pacific Rim. Domestically, both companies see synergies in marketing professional fertilizers and turf seed through their respective distribution channels, Jacklin explained. In research and development, Simplot has biotechnology research resources from its work with potatoes that may benefit Jacklin Seed.

- Paul Schrimpf

Textron Makes Offer To Buy Ransomes

IPSWICH, ENGLAND - The volatile professional equipment market received another jolt recently, when global manufacturing giant Textron announced that it had tendered an offer to acquire Ransomes PLC for $230 million.

This is the second major acquisition of a turf care equipment manufacturer by Textron in two years. The company purchased Bunton Corp. in September 1996.

Textron, which in addition to Bunton carries the Jacobsen line of turf equipment and E-Z-GO utility vehicles, will add the entire lines of Ransomes, Cushman and Ryan turf care equipment.

DowElanco Picks Riverdale To Market Herbicide Chemistries DowElanco recently signed a partnership agreement with River-dale Chemical, Glenwood, Ill., to exclusively market triclopyr and clopyralid herbicide chemistries in phenoxy combination products for broadleaf weed control in the professional and consumer turf markets. Riverdale will be producing both sprayable and granular formulations, as well as “herbicide plus fertilizer” products. The recent release of Millennium Ultra is the first of at least nine new product releases anticipated from Riverdale over the next five years.

“This acquisition is consistent with Textron’s strategy to expand core businesses on a global basis,” explained James Hardymon, chairman and chief executive officer of Textron. “Ransomes provides Textron with complementary products and strong European and U.S. based manufacturing capabilities for our golf and turf care businesses.”

Although the deal has tremendous ramifications in the domestic market, industry sources indicated that part of Ransomes’ appeal is its position as the leading provider of equipment to golf courses in the European market.

Ransomes’ sales for the year ending Sept. 30, 1996 were $313 million. The deal is subject to a shareholder vote and regulatory approval.

- Paul Schrimpf