At the end of November, the J.R. Simplot Company announced it has agreed to acquire Pinnacle Agriculture. AgPro had the opportunity to ask Doug Stone, President of Simplot’s AgriBusiness Group, a series of questions after the acquisition was announced.
Here’s what we learned:
1. The acquisition will help expand Simplot’s team of people and its knowledge base.
“We’re very excited about welcoming the Pinnacle employees. The agreement will obviously increase our footprint into a much larger area. But, perhaps more importantly, by bringing the experience, expertise and passion of the two operations together we will be able to serve our customers in ways well beyond what the two entities were able to provide alone,” Stone said.
“I think the people are the first benefit in any of these types of things. We’re bringing in some great people and really great professionals and we’re very excited to welcome them to Simplot. This will, in turn, really benefit our customers,” he said.
2. While Simplot had previously concentrated on its business west of the Mississippi River, this acquisition will stretch its footprint in a strategic way for the company.
“This really enables us to grow into the midwestern and southern states, two areas that complement Simplot’s existing locations, and serve farmers in some of the most important agriculture communities in the world. It really positions us for a bright future,” Stone said.
3. Many details are still forthcoming, including the future of the Pinnacle name, Mission Seeds and Innvictis Crop Care.
“Our transition team is working through all of those types of details, but Pinnacle has some great products that farmers know and trust,” Stone said. “We’ll be ready to talk more about that moving forward, but we feel that all of our operations are stronger when we’re all working together. We have a long history and an amazing culture and we look forward to enhancing that further with our new team members and locations. ”
4. Synergies are already emerging from the two business’s common mission.
“We’re very similar in our desire to grow closer to our customers in order to provide increased service and value. Our dedicated crop advisors are a good example of that and we’re excited that we’ll now have more than 500 to provide the best advice and insight to our customers. Of course, some of the products, processes and ideas are different, but having the ability to share in those things will only make us all better,” Stone said.
“Any time you can bring together a pair of industry leaders with complementary businesses, you’re going to learn and grow and improve in what you do, and that’s what we expect. We can learn a lot from the Pinnacle employees and we’re excited about what the future holds for our customers and our business.”
He added, “Our commitment to farmers and the agriculture communities they call home, is stronger than ever. Both Pinnacle and the J.R. Simplot Company have long histories of supporting the farmers and our combined companies will provide better value for a broader range of products, services and distribution channels to better serve their needs.”
5. The agreement is not yet final, and the transition team is still working on the deal. Stay tuned to AgPro as we’ll continue to report on this developing story.