Profile: The Andersons Inc (ANDE.OQ)
14 Mar 2014
The Andersons, Inc., incorporated on August 19, 1987, is a diversified company engaged in agriculture business. The Company conducts business across North America in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing. The Company operates in six segments: grain, ethanol, rail, plant nutrient, turf and specialty, and retail. The principal grains sold by the Company are yellow corn, yellow soybeans and soft red and white wheat. As of December 31, 2012, storage capacity at the Company's wholesale nutrient and farm center facilities was approximately 470,000 tons for dry nutrients and approximately 400,000 tons for liquid nutrients. On December 3, 2012, the Company completed the purchase of Green Plains Grain Company. Effective August 12, 2013, The Andersons Inc acquired a minority stake in eWeatherRisk Inc, a provider of online weather risk management services. In September 2013, the Company announced that it has completed the purchase of Mile Rail, LLC, a railcar repair and cleaning provider. In December 2013, The Andersons Inc acquired Cycle Group Inc, a manufacturer of granulated products.
The Company’s Grain business operates grain elevators in various states in the United States Corn Belt. The Grain business also offers a number of grain marketing, risk management and corn origination services to its customers and affiliated ethanol facilities for which it collects fees. Approximately 92% of the grain bushels sold by the Company during the year ended December 31, 2012, were purchased by United States grain processors and feeders, and approximately 8% were exported. The Company's grain operations rely principally on forward purchase contracts with producers, dealers and commercial elevators to ensure an adequate supply of grain to the Company's facilities throughout the year. The Company owns 51% of the diluted equity in Lansing Trade Group LLC (LTG). LTG is focused on the movement of physical commodities, including grain and ethanol. LTG also trades in commodities that the Company's grain and ethanol businesses do not trade in, some of which are not exchange traded.
The Company’s Ethanol Group has ownership interests in four limited liability companies (the ethanol LLCs or LLCs). Each of the LLCs owns an ethanol plant that is operated by the Company's Ethanol Group. The plants are located in Iowa, Indiana, Michigan, and Ohio and have combined capacity of 330 million gallons of ethanol. The Group offers facility operations, risk management and marketing services to the LLCs it operates, as well as third parties. The Company holds a majority interest (85%) in The Andersons Denison Ethanol LLC (TADE. The Company holds a 50% interest in The Andersons Albion Ethanol LLC (TAAE) and a 38% interest in The Andersons Clymers Ethanol LLC (TACE). The Company holds a 50% interest in The Andersons Marathon Ethanol LLC (TAME) through its majority owned subsidiary The Andersons Ethanol Investment LLC (TAEI).
Plant Nutrient Group
The Company’s Plant Nutrient Group is a manufacturer, distributor and retailer of agricultural and related plant nutrients and pelleted lime and gypsum products in the United States Corn Belt, Florida and Puerto Rico. The Group provides warehousing, packaging and manufacturing services to basic nutrient manufacturers and other distributors. The Wholesale Nutrients business manufactures, stores, and distributes nearly 1.8 million tons of dry and liquid agricultural nutrients, and pelleted lime and gypsum products annually. The major nutrient products sold by the business principally contain nitrogen, phosphate, potassium and sulfur. The Plant Nutrient business also manufactures and distributes a variety of industrial products throughout the United States and Puerto Rico, including nitrogen reagents for air pollution control systems used in coal-fired power plants, water treatment and dust abatement products, and de-icers and anti-icers for airport runways, roadways, and other commercial applications. The Farm Centers offer a variety of essential crop nutrients, crop protection chemicals and seed products in addition to application and agronomic services to commercial and family farmers. Soil and tissue sampling along with global satellite assisted services provide for pinpointing crop or soil deficiencies and prescriptive agronomic advice is provided to farmers.
The Company's Rail Group repairs, sells and leases a fleet of over 23,000 railcars and locomotives of various types, as well as a small number of containers. There are twelve railcar repair facilities across the country. In addition, fleet management services are offered to private railcar owners. The Rail Group is also an investor in the short-line railroad, Iowa Northern Railway Company (IANR). The Company has a diversified fleet of car types (boxcars, gondolas, covered and open top hopper cars, tank cars and pressure differential cars), locomotives, and containers serving a broad customer base. The Company principally operates in the used car market - purchasing used cars and repairing and refurbishing them for specific markets and customers.
Turf and Specialty Group
The Company’s Turf and Specialty Group produces granular fertilizer and control products for the turf and ornamental markets. It also produces private label fertilizer and control products, and corncob-based animal bedding and cat litter for the consumer markets. The Company is a processor of corncob-based products in the United States. These products serve the chemical and feed ingredient carrier, animal litter and industrial markets, and are distributed throughout the United States and Canada and into Europe and Asia. Professional turf care products are produced for the golf course and professional turf care markets, serving both United States and international customers. These products are sold both directly and through distributors to golf courses (under The Andersons Golf Products TM label) and lawn service applicators. The Company also produces and sells fertilizer and control products for do-it-yourself application, to mass merchandisers, small independent retailers and other lawn fertilizer manufacturers and performs contract manufacturing of fertilizer and control products.
The Company's Retail Group includes retail stores operated as The Andersons, which are located in the Columbus and Toledo, Ohio markets. The retail concept is More for Your Home and the stores focus on providing significant product breadth with offerings in home improvement and other mass merchandise categories, as well as specialty foods, wine and indoor and outdoor garden centers. Each store has 100,000 square feet or more of in-store display space plus 40,000 or more square feet of outdoor garden center space, and features do-it-yourself clinics, special promotions and varying merchandise displays. The Company also operates a specialty food store operated as The Andersons Market located in the Toledo, Ohio market area. The specialty food store concept has product offerings with emphasis on freshness that features produce, deli and bakery items, fresh meats, specialty and conventional dry goods and wine. The Company also operates a sales and service facility for outdoor power equipment near one of its retail stores.
The Andersons Inc
480 W. Dussel Drive
MAUMEE OH 43537