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.
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
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
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
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
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
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.
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
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
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
The Andersons was founded in Maumee, Ohio in