Andersons to acquire Lansing equity for $305M
The Andersons announced that it has entered into a merger agreement with Lansing Trade Group, its long-time affiliate, to acquire the 67.5% of Lansing equity that it does not already own for cash and stock currently valued at a total of approximately $305M. In addition to paying approximately $175M in cash, the Company will issue unregistered shares to current Lansing equity holders presently valued at approximately $130M subject to certain closing adjustments and changes in the share price of Andersons stock, respectively. The transaction will also result in the consolidation of Thompsons Limited of Ontario, Canada and related entities as they have been jointly owned by Lansing and the Company. The Company will assume approximately $166M of long-term debt, consisting of up to $130M from Lansing and about $36M from Thompsons. The implied purchase price is less than 9 times EBITDA for the twelve months ended August 31. The Company expects the transaction to be accretive to EPS within the first full year after closing and to achieve annual run rate cost synergies of at least $10M by year-end 2020. The transaction is expected to close before January 31, 2019, subject to Lansing shareholder approval and customary government and regulatory approvals.