Andersons Acquires New Eezy Gro

The Andersons, Inc. (ANDE - Analyst Report) recently completed the purchase of the manufacturer and wholesale marketer of specialty agricultural nutrients and industrial products, New Eezy Gro, Inc. The value of the deal is not yet disclosed.

New Eezy, which carries out its operations in Carey and Sycamore in Ohio, would be included in the Plant Nutrient Group segment of The Andersons. The Plant Nutrient segment generated approximately 15% of total revenue in the third quarter of the fiscal 2011.

The Andersons is planning to expand its business in the Plant Nutrient segment. In October, The Andersons completed the acquisition of specialty vegetable producers, Immokalee Farmers Supply, Inc. Now, with the acquisition of New Eezy, The Andersons will be able to further expand its product range in the Plant Nutrient segment. The recent addition will also help in augmenting the customer base of The Andersons.

New Eezy is a privately held company founded in 1984. It supplies liquid calcium nitrates and other specialty products chiefly to the specialty agriculture and industrial markets of Ohio, Michigan, Indiana, Illinois, Wisconsin, Minnesota, Kentucky and Pennsylvania.

The Andersons has fared well in the third quarter of fiscal 2011. It has reported an EPS of 59 cents; up from 8 cents in the year-ago quarter. It delivered net sales of $938.7 million, up 33% from the prior-year quarter. The Zacks Consensus Estimate for the fourth quarter EPS is 97 cents.

However, the impact of the generally weak economy on the company’s Retail group segment remains a concern. The Andersons is witnessing a decline in customer count as well as a lower average sale per customer, as customers are cutting down on discretionary spending. Stiff competition, especially from the mass merchandisers and do-it-yourself home centers, has also added to the company’s concerns.

Based in Ohio, The Andersons, which has a Zacks #2 Rating (short-term Buy recommendation), is a diversified company operating in five different business segments ranging from buying, selling and storing grain to leasing railcars and running retail stores; catering to the latest home and hardware needs. The company has operations across the U.S. and in Puerto Rico, besides rail equipment leasing interests in Canada and Mexico.  

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