Color Spot Buys El Modeno Assets

Color Spot Buys El Modeno Assets

Another major California growing operation is exiting the business. El Modeno Gardens will close its doors after Oct. 31 and Color Spot Nurseries is purchasing the operation’s equipment, raw materials and inventory.

Ranked at No. 41 on our Top 100 Growers, El Modeno Gardens specializes in perennials, flowering shrubs, bedding plants and blooming potted plants. The business was founded by the Groot family in 1958 as a specialty fern grower in an area called El Modena, which is now part of the city of Orange. The company began growing color in 1-gallon and 5-gallons to fill an emerging market niche in the 1960s.

The company moved to its current headquarters in Irvine, Calif., in 1967 and expanded to multiple facilities in Northern and Southern California–Hollister, Valley Center, Watsonville, Lake Mathews and Imperial County. In 2003, El Modeno added a Tyler, Texas facility, which has been leased by Seville Farms the last 18 months.

El Modeno also set itself apart by introducing some of its own varieties, like the euryops ‘Elmo Elite’ and ‘GreenGold,’ and a landscape gerbera, ‘Jaunty.’ Cartoon experts, Elmo and Deno, answered consumer gardening questions online.

Color Spot Nurseries’ founder and President Jerry Halamuda says he and his partner, Michael Vukelich, have been working with the Groot family the last four months to help them with their exit strategy. “We said, ‘Hey, you have assets, we will buy them from you,'” Halamuda says. “This gives them the ability to exit the business as economically viable as possible.”

The past two months, Color spot has been purchasing plant inventory and moving it to its Fallbrook and Salinas facilities. While El Modeno is still using equipment and trucks the rest of the month, after Oct. 31, Color Spot will purchase the remaining plant inventory, raw materials and equipment. At a few of the locations, the inventory and equipment will remain on site and Color Spot will use those locations through next spring and then vacate them. The Groot family will continue to own the land and facilities.

Halamuda says El Modeno’s customer base is the same as Color Spot’s. “We have a mutual customer base and will continue servicing the product categories they have. Our own field-level reps have the same accounts,” he says.

Color Spot ranks at No. 1 on our Top 100 Growers and is the clearly dominant operation on the West Coast and the Southwest with a very strong position in Texas. Based in Fallbrook, Calif., California locations include Carson, Lodi, San Juan Capistrano and Salinas. Texas locations include Troup, Huntsville, San Antonio, Waco and Walnut Springs.  

Two years ago Color Spot acquired Powell Plant Farms in Troup, which had 351 acres of land and 2.5 million square feet of greenhouse production. Color Spot has been leasing production facilities from several other growers in that area, bringing production to 4 million square feet of greenhouse production on 500 acres of land. “This has become a mega facility for us here,” Halamuda says. “Right now we’re growing 1.2 million poinsettias.”

While this year has been a difficult one, Color Spot continues to increase its business. “Our business is up from last year and we’ll have a sizable increase going into next year” he says. “This is the most difficult time I’ve seen in 40 years economically. Unemployment is getting worse and real estate is more difficult than ever in California. Plus we have the drought issues.”

Leave a Reply

More From Finance/Operations...

April 1, 2015

Philadelphia Flower Show Draws More Than 250,000 Attendees With Disney Pixar Movie Theme

With more than 250,000 consumers attending the prestigious Philadelphia Flower Show in March each year, it's a great opportunity to get flowers and gardening products into the public eye. This year's show displays took on family favorites at the movies, with a focus on Disney and Pixar films. Check out some of the highlights in our slideshow.

Read More

April 1, 2015

Peace Tree Farms Grows Its Customer Base

Over the past five years, Peace Tree Farms in Kintnersville, Pa., has concentrated on growing its business by providing plant material for the displays at the illustrious Philadelphia Flower Show. We caught up with Peace Tree Farms’ Lloyd Traven to ask about how the Flower Show figures into his business plan.

Read More
protecting bees and pollinators video

March 31, 2015

New Video On Protecting Bees And Pollinators Educates Horticulture Industry Professionals

A new educational video that provides information on the horticultural industry’s essential role in bee and pollinator stewardship is one result of industry collaboration by the Horticultural Research Institute, AmericanHort, Society of American Florists and the American Floral Endowment. “Protecting Bees & Pollinators: What Horticulture Needs to Know,” narrates the current state of bee and pollinator health, provides information on factors that impact pollinators and the environment and underscores the beneficial role horticulture plays in providing healthy pollinator ecosystems.

Read More
Latest Stories
DNA-logo

March 31, 2015

DNA Green Group Will Acquire Rijnplant

DNA Green Group and Riknplant have finalized DNA Green Group's acquisition of Rijnplant, meaning that the breeding and propagation activities in pot and cut anthurium, bougainvillea and heliconia will transfer to DNA Green Group.

Read More
AFE scholarship_Ryan Dickson

March 25, 2015

AFE Educational Grant And Scholarship Application Deadl…

Apply now for American Floral Endowment (AFE) scholarships or educational grants. Applications can be found online. For educational grants for 2015-2016, applications must be submitted no later than June 1. Scholarship applications are due May 1. AFE will award $40,000 in scholarships for 2015.

Read More

March 23, 2015

UF/IFAS Appoints Joseph Albano As Director Of Mid-Flori…

The University of Florida's Institute of Food and Agricultural Sciences (UF/IFAS) has a new directors for its Mid-Florida Research and Education Center (REC) on Apopka, Fla. The role has been filled by Joseph Albano, a research horticulturist from the U.S. Department of Agriculture with more than 25 years of experience.

Read More

March 17, 2015

Pike Nurseries Implements Employee Stock Ownership Plan

Independent garden retailer Pike Nurseries has announced it will become an employee-owned company. Pike Nurseries management has combined with its sister corporation in California, Armstrong Garden Centers, to operate under an established Employee Stock Ownership Plan (ESOP).

Read More
GrowIt! App Wins Gold At Design100 2014 US Mobile & App Design Awards

March 10, 2015

GrowIt! Mobile App Now Available For Android

The mobile app GrowIt! Garden Socially can now be used by gardeners with Android-based smartphones. Now available on the Google Play Market, GrowIt! helps users find plants to fit their lifestyle and connect them with other local gardeners.

Read More

March 4, 2015

Second Annual GreenhouseConnect Will Bring Growers and …

Following a successful inaugural event in Tampa last fall, Greenhouse Grower has announced the dates of its second annual GreenhouseConnect: October 26-29, 2015. Representatives of an expected two dozen leading greenhouse operations from across the U.S. will join senior-level suppliers at Rancho Bernardo Inn in San Diego for several days of one-on-one strategic meetings, a growers-only roundtable, informational sessions and a variety of networking events.

Read More

March 4, 2015

Maryland Green Industry Associations Unite

The Maryland Nursery and Landscape Association recently announced that it is expanding its reach to include the greenhouse industry, meaning it has become The Maryland Nursery, Landscape and Greenhouse Association (MNLGA). The change comes as a result of the planned dissolution of the former Maryland Greenhouse Growers Association and the invitation for those members to join the existing and renamed association.

Read More
IPPS Sharing Plant Production Knowledge Globally Logo

February 25, 2015

International Plant Propagators Western Region Sets Ann…

The annual meet for the International Plant Propagators' Society (IPPS) Western Region has been set for this September. It will take place September 23 to 26 in Modesto, Calif., and will include learning sessions, tours to local nurseries, a research poster display and poster presentations, various networking opportunities and an awards banquet to close the event.

Read More
myers industries Lawn and Garden Logo

February 24, 2015

Myers Industries, Inc. Lawn And Garden Business Sold, N…

The management of Myers Lawn and Garden Group, along with Wingate Partners V, L.P. have recently acquired the Myers Industries, Inc. Lawn and Garden business. The new company is named The HC Companies, and will continue as a North American leading provider of horticulture containers supplying the greenhouse, nursery and retail markets.

Read More
american-hort-logo

February 17, 2015

AmericanHort Announces New Board Members

AmericanHort recently announced the election of new officers and members to the board of directors. Each will assume their positions on the board during Cultivate’15, July 11 to 14 in Columbus, Ohio.

Read More
All American Selections

February 17, 2015

All-America Selections Elects New Officers, Names New J…

While meeting during the Flower and Vegetable Seed Conference in Tampa, Fla., hosted by the American Seed Trade Association, All-America Selections elected new officers for a two-year term. Read on to learn about the new officers, as well as all of the new judges that were added in 2014.

Read More
Greenhouse Grower.com on your desktop, on your phone, on your tablet

February 11, 2015

GreenhouseGrower.com Relaunches With Responsive Design …

Greenhouse Grower magazine, the nation’s leader in profits, production and education for greenhouse growers, announces the launch of its completely redesigned website, GreenhouseGrower.com. The new design is the product of direct user feedback and GreenhouseGrower.com analytics, and includes responsive design for ease of mobile use.

Read More
Andy Higgins

February 3, 2015

MasterTag Names Andy Higgins As Its New President

Former CEO and president of Ecke Ranch, Andy Higgins, joins MasterTag as its new president. He brings more than two decades of industry experience to the position.

Read More
Syngenta Bioline Hires Ronald Valentin For Technical Lead Role

January 28, 2015

Syngenta Bioline Hires Ronald Valentin For Technical Le…

Ronald Valentin has been appointed technical lead for Syngenta Bioline, effective January 2015. He will be responsible for technical support of Bioline biological control agents and will be instrumental in helping growers develop integrated pest management (IPM) solutions.

Read More

January 27, 2015

Give Equal Time To The Number Crunchers

Before investing in a new business opportunity, check in with the financial gurus of your organization to make certain you have the cash flow to back up your efforts.

Read More
Plant Introductions, Inc. partners Mark Griffith, Dr. Michael Dirr and Jeff Beasley and Bailey Nurseries President Terri McEnaney.

January 20, 2015

Bailey Nurseries’ Purchase Of Plant Introductions Inc. …

When Bailey Nurseries purchased its long-time breeding partner, Plant Introductions, Inc. (PII), in early January 2015, it freed the PII team to concentrate on what they do best: develop new plants. Bailey Nurseries will take on the business management side of the partnership, but otherwise the relationship it has enjoyed with PII for years will be largely unchanged.

Read More
Plant Introductions, Inc. partners Mark Griffith, Dr. Michael Dirr and Jeff Beasley and Bailey Nurseries President Terri McEnaney.

January 13, 2015

Bailey Nurseries Acquires Plant Introductions

Bailey Nurseries has acquired Plant Introductions, Inc. (PII), effective January 1, 2015. PII has developed numerous innovative new varieties that have been marketed worldwide, many introduced by Bailey Nurseries.

Read More

January 7, 2015

How Inflation Affects Your Business And Why You Can’t I…

Awareness of the true increase in costs after inflation is a necessary part of good financial management for greenhouse operations.

Read More