Breaking News: Feb. 1999, Scotts Reorganizes; Mergers & Acquisitions Seminar

MARYSVILLE, Ohio – The most dominant name in consumer lawn and landscape care will now be easier for the professional lawn care contractor to obtain, if the plan announced by The Scotts Company meets its goals.

The company announced a reorganization of its North American Professional Business Group “to strengthen distribution and technical sales support, integrate brand management across market segments and reduce annual operating expenses.”

The reorganization will significantly expand upon the company’s relationships with four considerable distributors: Turf Partners, serving the Midwest and Northeast; BWI Companies in the Southwest and Southeast; Wilbur Ellis Company in the Pacific Northwest; and Western Farm Services in California.

Scotts Reorganizes Supply Side

“We feel confident that this broadened relationship will bring better service and deliver to our professional turf and landscaping customers as well,” noted James Hagedorn, head of Scotts’ North American Businesses.

Working with these new distributor relationships should double the numbers of Scotts’ sales representatives and quadruple the number of warehouses carrying professional product for Scotts.

Scotts also reported that the reorganization will eliminate about 60 jobs in the group’s ProTurf division, primarily in marketing, sales management and customer services positions that will now be replaced by the aforementioned distributors.

Hagedorn noted that Scott Todd, who most recently served as vice president of the horticulture Division within Scotts’ Professional Business Group, will lead the new turf and ornamental organization.

In a separate move, Scotts announced a turfgrass technology-sharing pact with Monsanto where both companies will work to produce “improve transgenic turfgrasses and ornamental plants” that could then be licensed to other suppliers in the industry.

Specifically, “the alliance will focus on providing professional and consumer benefits such as turfgrass that requires less mowing and water, ornamental plants that last longer and produce larger and more plentiful blooms, and plants that will allow for better weed control,” according to a release from Scotts.


Mergers & Acquisitions Focus 0f Seminar

SAN FRANCISCO – About 100 potential buyers and sellers came together for the second annual Landscape and Lawn Care Industry Mergers and Acquisitions Institute, presented by the Fulcrum Group last month.

The event was chaired by Burt Sperber, chief executive officer of Environmental Industries, Calabasas, Calif. Attendees heard members of the industry and financial professionals speak on a number of topics, such as “Knowing What Buyers Are Looking For,” “Selecting the Best Available Financing Alternative” and “Negotiating the Acquisition Agreement.”

Representatives of all of the green industry’s major consolidation players were in attendance. In addition, a new player may be joining the game shortly, as Growscapes, Houston, Texas, confirmed it is in the final stages of formulating the basis for its industry consolidation efforts. The company hopes to formally announce its initial acquisitions, which may number as many as 12 current independent companies, in early March with the possibility of an initial public stock offering to take place this summer.


Acquisition Update?

  • LandCare USA has announced the following additional acquisitions: Eagle Landscape, Rancho Cordova, Calif.; ServiceScape, Michigan City, Ind.; and Austin Natural Resources, Austin, Texas, for a total of 22 companies.

  • TruGreen-ChemLawn has also announced the following acquisitions: Pennink Arrimour, Huntingdon Valley, Pa.; Earth Enterprises, Seattle; Van Herrick, Los Angeles; and Evergreen, Bellevue, Wash., for a total of 16 companies.
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