Lansing Trade Group, LLC, a pet food ingredient supplier, and Interstate Commodities, Inc. announced they have entered into an agreement in principal for Lansing to acquire materially all the grain and feed ingredient trading businesses and associated assets of Interstate. The acquisition, which remains subject to certain customary conditions, is expected to close early in the 3rd quarter of this year.
“Interstate’s trading business has a long-standing and well respected reputation in the agriculture markets,” says Bill Krueger, president and CEO of Lansing Trade Group, in a press release. “Both Lansing and Interstate believe the industry needs consolidation and want to be out at the forefront of a more efficient and customer focused business model”
“Lansing and Interstate have had a strong relationship for decades and believe now is the perfect time to combine our teams.” says Interstate CEO Greg Oberting, in a press release. “As a combined company, we will be able to grow both organically and through additional acquisitions.”
Both companies expect their customers to continue to see a high level of customer service from the combined business, along with now having access to both origins and destinations across a network that encompasses all North America."
Pet food mergers and acquisitions
Other mergers and acquisitions were the focus of the Petfood Industry article, “Pet food M&A highlights developing markets, other trends.”
in March 2017, KKR, a global investment firm active in the pet market, invested in Gambol Group, a Chinese pet food company. Six months earlier, a Chinese investment firm, Hillsdown Capital Management, acquired Gimborn, a pet treat manufacturer based in Germany.
Gambol likely attracted KKR’s interest because of its existing influence outside of China, such as in the US, where it has grown into the largest private-label supplier of pet treats to Walmart. KKR’s investment cemented its status on the international scene.
This focus on growing markets is not limited to China: in May 2017, German pet food company Interquell formed a joint venture in Thailand called Happy Pet, mimicking its leading Happy Cat and Happy Dog brands in its home region.