Andersons Does Small Roll-Up Acquisition (ANDE)

The Andersons, Inc. (NASDAQ: ANDE) is making a niche acquisition to fit into its fertilizer operations.  It has acquired Douglass Fertilizer & Chemical Inc. as an addition to its Plant Nutrient Group to diversify the group’s product line offering.  It will also expand Andersons market "outside the traditional Midwest row crops and into Florida’s rich specialty crops."

Douglass Fertilizer is based in Maitland, Florida and is primarily a specialty liquid nutrient manufacturer, retailer and wholesaler.

Douglass Fertilizer is a specialty liquid nutrient manufacturer and retailer primarily serving Florida and to a lesser degree the Southeastern U.S. and the Caribbean; and it generated revenues of $48 million in 2007.

As fas as a comparison, Andersons Inc. generated some $2.379 Billion in revenues during 2007.  Depending upon the expansion that the company can make with a deeper pocketbook, that’s only about a 2% revenue bump. 

The Anderson’s market cap is $843 million and with a $46.50 stock price is toward the higher-end of its $38.10 to $52.67 trading range over the last year.

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Jon C. Ogg
April 29, 2008