Barenbrug USA Bolsters Focus on Wholesale Distribution

Tangent, OR – On Feb. 13, Barenbrug USA concluded the sale of its 'Pittsburgh Division' to IKEX,  a distributor for Barenbrug USA involved in distribution of grass seed, erosion control products and pesticides. IKEX is headquartered in North Carolina and has locations in Maryland, Georgia and now Pennsylvania. It is the desire of both Barenbrug USA and IKEX to develop a long-lasting relationship in which Barenbrug USA supplies grass seed varieties to IKEX and the IKEX locations serve as distributors of a multiple product line to the lawn and landscape industry.

For the past three years, Barenbrug USA has pursued a restructuring program that focuses its strengths on grass variety breeding, seed production, seed processing and wholesale marketing. The distribution of grass seed products is more effective through established distributors such as IKEX. Customers can then also access a more complete line of complimentary products through this distribution. This restructuring therefore benefits all companies involved.

As part of the agreement, IKEX has agreed to maintain the employment of the Pittsburgh employees. In the past six years, the Barenbrug USA - Pittsburgh employees have proven to be very capable of servicing the Pittsburgh market. With the inclusion of the new product lines under the new IKEX management, the future of IKEX - Pittsburgh and its employees is extremely good.

After the closure of the Ogdensburg, N.J., and Chantilly, Va., facilities in the fall of 2000, the Fresno, Calif., warehouse in August 2002 and Barenbrug, Colo., in October 2002, this sale of the Pittsburgh location to IKEX concludes the implementation of Barenbrug USA's strategy to focus on breeding, production and marketing. Barenbrug USA has now divested itself completely from the regional distribution of its products, only selling seed on a wholesale basis from its production center and main office facility in Oregon.