About The Andersons Inc

The Andersons earns its daily bread on a mix of grains, trains, and corncobs. The agricultural company's main business -- its Grain and Ethanol segments -- consists of the buying, conditioning, and reselling of corn, soybeans, and wheat, which it acquires from US grain farmers and stores. To support the operation, it uses a system of elevators and terminals located in the Midwest. Its Grain and Ethanol units account for more than 75% of annual sales. The Andersons also boasts a Plant Nutrient/Turf & Specialty Group, a Retail Group, and a Rail Group. The agricultural firm operates in the US in more than 20 states, as well as in Puerto Rico. The company also has rail-leasing interests in Canada and Mexico.

Operations

The diversified company operates through five business segments: Grain Group (59% of 2015 sales), Ethanol Group (13%), Plant Nutrient Group (20%), Retail Group (4%), and Rail Group (4%).

Its Grain Group is a significant investor in Lansing Trade Group, an established commodity trading, grain handling, and merchandising business with operations nationwide and with global trading/merchandising offices. The Andersons holds an 85% interest in The Andersons Denison Ethanol LLC (TADE), a 53% interest in The Andersons Albion Ethanol LLC (TAAE), and a 38% interest in The Andersons Clymers Ethanol LLC (TACE). Also the company has a 50% stake in The Andersons Marathon Ethanol LLC (TAME) through its majority-owned subsidiary The Andersons Ethanol Investment LLC (TAEI). A third party owns 34% of TAEI. 

The Plant Nutrient Group has farm centers located throughout Michigan, Indiana, Ohio, and Florida. The farm centers offer agricultural fertilizer, chemicals, seeds, supplies, and custom fertilizer application. The group also makes liquid anti-icers and deicers for use on roads and runways. The Andersons' Retail Group runs large retail home-center stores that serve the Toledo and Columbus, Ohio, areas. The stores sell home-improvement products, nursery stock, groceries, beverages, and other items.

The company's Rail Group sells, leases, repairs, and reconfigures railcars and locomotives. The Group also provides fleet management services and operates a custom steel-fabrication business. The company also owns around a 50% stake in Iowa Northern Railway Company (IANR), a 163-mile short-line railroad, which runs through Iowa from northwest to southeast.

Geographic Reach

Based in Ohio, The Andersons' main agricultural operations are in Florida, Iowa, Minnesota, Nebraska, Puerto Rico, Tennessee, Texas, Wisconsin, Ohio, Indiana, Illinois, and Michigan. Its railcar operations, which include 16 repair facilities and a fabrication shop, are primarily in the Midwest, South, and West.

Financial Performance

The company's net sales fell 7.5% in 2015, the second year of declining sales after steady growth since 2010. In 2015, sales slid to $4.2 billion due to decreased Grain and Ethanol segment sales.

The Grain Group sales and merchandising revenues decreased due to lower corn prices. Lower production in the eastern corn producing region resulted in lower supplies and lower prices. Lower corn prices also led to lower ethanol sales. Rail Group sales increased 15% from driven by higher-than-normal leasing settlements.

Andersons reported its first loss as a public company in 2014, losing $13 million for the year. The company had a $54 million good will impairment charge on its grain and farm center units and a $51 million pension settlement charge.

The Andersons generated $154 million in cash flow in 2015 and sending out about $10 in cash in 2014.

Strategy

The Andersons is looking to profit from macro-economic trends, including world population growth, escalating demand for protein, and increasing North American crop production. Its diverse agribusiness and industrial based activities are all exposed to these trends in one way or another, from handling bulk commodities to using its rail cars and logistics assets to move them.

In 2016 The Andersons agreed to sell eight of its Iowa facilities to MaxYield Cooperative of West Bend, Iowa. The facilities came to Andersons with its 2012 acquisition of assets of Green Plains Grain Company. The facilities, however, put pressure on the company's profits. The Andersons maintains other Green Plain assets such as those in Tennessee assets acquired during that same transaction will remain a part of The Andersons. The deal does not affect the company's ethanol facility or Nutra-Flo facilities in Iowa.

The companycombined its Turf & Specialty and Plant Nutrient groups in 2015 to foster growth and enhance profitability. It plans to grow the lawn and cob business by adding new products and technology, and by seeking out opportunities to acquire new businesses. Indeed, acquisitions in existing and new markets are key to The Andersons' growth strategy.

A focus of the Group in 2015 is to grow the rail fleet and continue to look for opportunities to open new repair facilities and other adjacent businesses. It also anticipates future repair business related to potential mandated modifications in the tank car industry.

In 2015 The Andersons announced the establishment of Maumee Ventures, a venture capital subsidiary of The Andersons designed to foster promising innovations that strategically align with the company's core businesses

Mergers and Acquisitions

Continuing to diversify, the company acquired Auburn Bean & Grain, which added six grain and four agronomy locations in Central Michigan and increased storage capacity and volume for the grain and nutrient businesses. The acquisition fits geographically between the company's Ohio and Michigan assets and Thompsons joint venture in Ontario, Canada.

In 2015 The Andersons purchased Kay Flo Industries, Inc. and certain subsidiaries for $125.2 million, including working capital.

Company Background

The Andersons was founded in Maumee, Ohio in 1947.

 

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The Andersons Inc

480 W Dussel Dr
Maumee, OH 43537-1690
Phone: 1 (419) 893-5050
Fax: 1 (419) 891-6521
www.andersonsinc.com

Stats

  • Employer Type: Public
  • Stock Symbol: ANDE
  • Stock Exchange: NASDAQ
  • President, CEO, and Director: Patrick E. Bowe
  • President, CEO, and Director: Patrick E. Bowe
  • COO: Harold M. Reed

Major Office Locations

  • Maumee, OH

Other Locations

  • San Diego, CA
  • Westley, CA
  • Woodland, CA
  • Clewiston, FL
  • Fort Myers, FL
  • Immokalee, FL
  • Lake Placid, FL
  • Maitland, FL
  • Zellwood, FL
  • Manly, IA
  • Milford, IA
  • Sioux City, IA
  • Champaign, IL
  • Mansfield, IL
  • Delphi, IN
  • Dunkirk, IN
  • Galveston, IN
  • Indianapolis, IN
  • Logansport, IN
  • North Manchester, IN
  • Oakville, IN
  • Waterloo, IN
  • Albion, MI
  • Hemlock, MI
  • Jonesville, MI
  • Litchfield, MI
  • Oakley, MI
  • Standish, MI
  • Webberville, MI
  • White Pigeon, MI
  • Winona, MN
  • Kansas City, MO
  • Pearlington, MS
  • Mocksville, NC
  • Fairmont, NE
  • Gibbon, NE
  • Kearney, NE
  • Paxton, NE
  • North Las Vegas, NV
  • Bowling Green, OH
  • Columbus, OH
  • Fostoria, OH
  • Fremont, OH
  • Gibsonburg, OH
  • Greenville, OH
  • Lima, OH
  • Metamora, OH
  • Sycamore, OH
  • Sylvania, OH
  • Toledo, OH
  • Warren, OH
  • Darlington, SC
  • North Sioux City, SD
  • Paris, TN
  • Union City, TN
  • West Haven, UT
  • Arena, WI
  • Kaukauna, WI
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