MGS and The Haifa Group to buy Plant Products Co.
May 1, 2013 By Canadian Garden Centre & Nursery
May 1, 2013, Leamington, ON — MGS Horticultural Inc. and Haifa Chemicals plan to purchase Plant Products Co., a fertilizer and pesticides supplier for the specialty horticulture market.
MGS will acquire Plant Products’ Canadian distribution business, sales force and name. MGS plans to use both names (MGS Horticultural and Plant Products) in all communications going forward. The company will maintain locations in Leamington, Ont, Brampton, Ont., Laval, Que., St. Hyacinthe, Que., and Detroit, Mich.
“This acquisition will enhance the ability of MGS to bring new and exciting products to its customer base. The combined technical expertise will be unmatched in the specialty horticultural industry. We expect our customers, suppliers and industry will benefit from the many synergies which will result from this transaction,” said Chris Stickles, CEO of MGS. “MGS is excited to have many talented individuals join our team. Plant Products staff will bring years of knowledge and experience to our growing company. We look forward to maintaining and enhancing relationships with the customers, suppliers, and strategic dealers of Plant Products.”
As part of the deal, MGS has signed multi-year agreements with Haifa to maintain exclusive distribution of Plant-Prod Soluble Fertilizers, Acer Controlled Release Fertilizer, Stim-Root and potting soil premix fertilizers for distribution in Saskatchewan, Manitoba, and Eastern Canada.
Haifa will acquire Plant Products’ high-performance complementary fertilizers including the Plant-Prod and Plantex lines of solubles and the Acer controlled-release fertilizer line. All the acquired business will be merged into Haifa group as a new company operating under the name Master Plant-Prod Inc.. Haifa will also acquire the blending facility in Brampton.
“For Haifa, this acquisition further enhances our wide specialty plant portfolio and expands our offerings of high-end products. It will make us into a bigger and stronger company with extensive technical expertise, global infrastructure and financial resources, and will enable us to further expand our investments, R&D and customer support activities in the specialty plant nutrition industry,” said Natan Feldman, Haifa’s vice-president of marketing and sales.
“The expansion of our production facilities greatly reinforces Haifa’s leading market position and solidifies our North American presence,” added Feldman. “It puts us at the very top of the global suppliers list. The added capacity from the new plant will not only increase Haifa’s overall production capacity, but will also shorten our distribution cycle in North America and improve the stability of supply, thus enhancing Haifa’s ability to respond to changing market situations.”
The deal is expected to close in 60 days.
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