Citing differences in business philosophies, Lesco and Syngenta Professional Products have announced a termination of their business relationship. Lesco will continue to sell and service Syngenta Professional Products during a yet-to-be-determined transition period, after which it will no longer represent the company's products.
In a press conference on May 17, Michael Vanausdeln, manager of corporate communications for Syngenta, said divergent business strategies were responsible for the announcement. Vanausdeln says Lesco has been taking a more retail-driven strategy while Syngenta is commited to "delivering value through traditional high quality, branded, full-service distribution. Value, service and expertise are how we do business and have done it for a long time. If we were to hedge on such a basic belief it would be a slippery slope in terms of our commitment to provide value to our customers."
Vanausdeln said the decision to end the relationship with Lesco was made on Monday, May 16.
In a press conference on May 18, Lesco confirmed that it will soon no longer carry Syngenta products.
"We are surprised and disappointed by Syngenta's decision. This change is not something that we take lightly, but ultimately this will prove to be in our customers' and the industry's best interests, said Michael DiMino, president and CEO of Lesco.
DiMino said the role of the distributor in serving customers is one difference that led to the announcement. "We believe that the distributor - whether it is Lesco of another distributor - is responsible for the customer relationship," he said. "The customer buys from us, gets a bill from us and pays us. However, Syngenta seems to believe that they own customer relationships and distributors don't provide value to the market."
Spokespersons for both companies predicted no long-term negatives for customers.
Syngenta says it has partnerships with 50 distributors serving the golf and turf and ornamental markets. "Customers will find Syngenta-branded products readily available through our nationwide network of distribution," said Bill Lewis, vice president with the company.
Lesco said BASF, Bayer, Dow AgroSciences and products from other manufacturers will replace Syngenta products that will no longer be carried.
The partnership between Lesco and Syngenta was established in 2000 when Syngenta was formed as a company, although Lesco had been selling products manufactured by the companies that formed Syngenta earlier than 2000. According to Lesco, Syngenta products represented about five percent of its sales. Syngenta says Lesco has been among its larger distributors.
For more information, Syngenta can be reached at 866/796-4368, and Lesco can be contacted at 800/321-5325.