Color Spot Will Split With Hines Division, But Continue to Operate Following Sale
A July 25 statement from Wells Fargo stated that Color Spot Holdings will continue to operate the remaining nurseries to deliver crop commitments to customers, following the transfer of ownership to Wells Fargo. The Hines ornamental nursery division will become part of TreeTown USA when the pending sale closes in early August.
In a hearing on July 20, a federal court approved the sale of Color Spot Holdings and its affiliates to Wells Fargo Bank, N.A., in coordination with TreeTown USA. The purchase agreement calls for the acquirers to offer employment to all employees with comparable compensation and benefits, and to maintain existing customer programs. The Hines ornamental nursery division will be assigned to TreeTown USA at closing.
Wells Fargo stated that TreeTown USA CEO Jonathan Saperstein will provide assistance to Wells Fargo, through the transition of the remaining Color Spot operations to new ownership.
“Color Spot’s relationships with existing customers and vendors are important to the company’s operations, which will focus initially on the pending fall and winter orders to reaffirm its commitment to providing quality products to its customers. The new ownership of Color Spot will be in communication with its various customers and vendors to address their needs and their questions about how Color Spot can fit with their future plans,” the Wells Fargo release stated.
Headquartered in Temecula, CA, Color Spot Holdings is one of the largest growers and distributors of live plants in the country, with more than 2,000 retail and commercial customers throughout the western and southwestern U.S. The company specializes in the distribution of high-quality bedding plants, vegetables, herbs, shrubs, premium blooming plants, groundcovers, and ornamentals.
Hines Division Will Support Continued Growth of TreeTown USA
In coordination with Wells Fargo’s acquisition of Color Spot Holdings, TreeTown USA stands to acquire the Hines ornamental division of Color Spot Holdings. The Hines division has three facilities totaling more than 2,000 acres located in California and Oregon. The deal represents the company’s latest strategic nursery acquisition, and provides TreeTown USA with a foothold in the Pacific Northwest and adjacent markets, as it expands its current coast-to-coast footprint, according to a July 25 release from TreeTown USA.
With its foray into the Pacific Northwest, TreeTown USA’s operations will include 19 farm locations throughout California, Texas, Florida, and Oregon, encompassing more than 6,000 acres in production.
“Hines, at one point, was the largest North American producer of ornamental container plants,” Saperstein stated in TreeTown USA’s release. “They developed industry-leading best practices, as well as a strong company culture. This knowledge base still resides within the company, and we look forward to the results of combining this with the great team we have in our organization. We look forward to working with Wells Fargo as they move forward with their acquisition of Color Spot.”
Saperstein said he anticipates there will be significant growth in the landscape professional segment of the horticulture industry, which will require an ongoing and growing need for shrubs, foundation plants, and trees within the large commercial space, as well.
“The size and locations of the Hines facilities will allow us to take advantage of the inherent economies of scale over the next decade,” Saperstein said.
TreeTown USA, founded in 2001, is a privately owned business headquartered in Houston, TX, with its West Coast Division, Village Nurseries in California. The combined company is known for its broad mix of high-quality plant material that includes more than 1,000 unique plant selections and variations. The company has forged partnerships with respected growers and breeders including Monrovia, Anthony Tesselaar International, Plant Haven International, Star Roses & Plants, and the Sunset Western Gardens Collection.
Check GreenhouseGrower.com for continued updates on the Color Spot Holdings sale.