MEMPHIS, Tenn. - ProSource One, the company known as Terra Industries until its acquisition in May 1999 by Cenex/Land O’Lakes, is on the block again.
Amid many rumors about its pending sale, the company has confirmed that 15 different organizations have signed letters of confidentiality and received a bid packet in order to make an offer. ProSource has asked these companies to submit a letter of intent by the end of this year, and many of these 15 organizations have reportedly told ProSource they will do this.
The nearly $2-billion distribution business serves the turf, nursery, forestry and agricultural markets. ProSource One management addressed the rumors in an open letter to its customers. The company is actually currently owned by Agriliance LLC, which is a joint venture formed in February 2000 by Cenex Harvest States Cooperatives, Land O’Lakes and Farmland Industries.
“ProSource One is a very viable retail company service as a distributor to the golf course, turf, ornamental, forestry, vegetation management and the Florida specialty agricultural business,” noted the company’s letter. “While there are similarities in what our parent sells … this business takes them away from their primary focus of serving wholesale agricultural markets. With the rapid growth of these non-crop industries, we are confident we’ll be able to transition this business to benefit both our customers and employees.”
ProSource One is optimistic it will be able to come to terms with a buyer early in 2001.