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MEMPHIS, Tenn. - Turf, nursery, forestry and agricultural distributor ProSource One, formerly known as Terra Industries, is close to changing hands for the second time in less than two years. Announced March 5, 2001, Royster-Clark Group has signed a non-binding letter of intent with Agriliance LLC, to acquire the assets of ProSource One and its parent company, Agro Distribution South. The businesses and assets being acquired by Royster-Clark have been operated by Agriliance since Agriliance purchased those assets from Terra Industries in May 1999. Together the companies employ approximately 1,100 people.
Terms of the transaction, which is expected to close by March 31, 2001, were not disclosed. Royster-Clark is an agricultural supplier of fertilizers, seeds and crop protection products to customers throughout the eastern United States with nearly 350 retail outlets and numerous production and distribution points.
Francis Jenkins Jr., Royster-Clark chairman and CEO, said, "The acquisition of Agro Distribution South and ProSource One fits perfectly into Royster-Clark’s long-term growth strategy. These are well-established, well-run businesses with deep roots in the communities they serve and an established customer base of first quality growers and producers. Based on our shared tradition of decentralized, market-specific service to growers, we anticipate a smooth transition that will prove beneficial to employees and customers alike. We are particularly excited about the acquisition of ProSource One, which brings to Royster-Clark the experience and knowledge that we need to effectively expand our presence in the extremely important markets they serve so successfully."
Bob Lee, director of ProSource One, cautioned that the sale is not yet final. "It’s too early to have all the answers because we are in the preliminary stages of decision making," he explained. "However, if things go as we expect, the whole will be much stronger than the sum of its parts."
Besides providing entrée for Royster-Clark into the green industry, the union will open the door for ProSource One to enter the Virginia, North Carolina and South Carolina markets, "areas we have been eyeing for the last five years," Lee said. "They have established locations we can work through. That definitely expands our reach."
The merger will also be important in Florida, which is currently a key market for both companies. Royster-Clark supplies blended and ammoniated fertilizer to the specialty agricultural markets in Florida, while ProSource One provides seed and crop protection products to the same sector. "This will make Royster-Clark by far the largest supplier of plant nutrients, seed and crop protection products to the entire Florida market, both professional and specialty ag," Lee said.