Ball Selling European Distribution, Purchasing Kieft Seeds
May 12, 2009 Ball Horticultural Company is selling its European distribution to Florensis and Graines Voltz. Ball is also purchasing Kieft Seeds, a prominent Dutch seed company, in a separate move, and it will combine Kieft’s activities with those that support PanAmerican Seed at Ball.
Florensis owns 30 percent of Kieft. The Kieft brand will continue to be used in the marketplace.
“The Kieft product line is pretty complimentary to the one we have in PanAmerican Seed,” says Cees Boonman, vice president of Ball Horticultural. “When a company like Kieft is for sale, you have to seriously look at it.”
In Germany and The Netherlands, Dutch-based Florensis will take over the offices and activities of Ball Holland and Ball Deutschland and merge them into Florensis entities. Ball will acquire a minority equity participation in the Florensis continental operations.
In the United Kingdom, Florensis UK will become a joint venture between Ball and Florensis. Both Ball Colegrave and Florensis UK will continue to operate under their own names and be managed locally.
In France, Graines Voltz, the exclusive distributor of Florensis, will acquire Ball Ducrettet.
“We think this is a major strategic move on our side,” Boonman says. “We feel by joining forces with Florensis and Graines Voltz, we have the opportunity to strengthen our position in Europe.”
In June 2001, Ball Horticultural acquired the Colegrave Group which later became Ball Colegrave when it was combined with Ball UK. The purchase was the largest in the history of the Ball family’s business, and it presented major opportunities in Europe. Around the same time, Ball formed Ball Ducrettet.
But times have changed in Europe since. Boonman cites industry consolidation in Europe as a major factor in Ball’s latest decisions.
“In the first couple years, we integrated these companies, but we were always aware of the fact there was a need to still expand and do business in an efficient way,” he says. “Obviously, in a market that is not really growing, you have to make some choices.
“If you look eight years [since June 2001], we didn’t have the critical mass to really compete in the marketplace. We’ve known Florensis for a long time. Me being Dutch helps the relationship a little bit, and we decided to talk with each other.”
Ball President Anna Ball, like Boonman, sees the realignment as an opportunity: “This move is designed to benefit growers with better service and innovative products and solutions.”
For more on Ball Horticultural Company, click here.
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