Deere to Acquire LESCO

by C&RB Staff (editor@clubandresortbusiness.com)
March 2007
 

In a deal that represents the largest revenue acquisition in its 170-year history, Deere & Company has entered into a definitive merger agreement to acquire LESCO, Inc. for $14.50 per common share in cash.

The acquisition will allow John Deere to “provide a more complete set of products and services,” said Jeffrey Rutherford, President and CEO of LESCO, a Cleveland, Ohio-based supplier of fertilizers, seed and chemicals for lawn maintenance professionals and golf course superintendents.

Upon closing of the sale, expected in the second quarter of 2007, Lesco will become part of John Deere Landscapes, a wholesale distributor of irrigation, nursery, lighting and landscape materials. The addition of Lesco’s 332 stores will roughly double Deere’s distributor locations in the U.S. and provide significant strengthening of its presence in Eastern Seaboard states.

LESCO’s expertise in the club industry will be aligned with Deere’s Golf & Turf One Source™, which provides customers at club and resort properties with additional resources and expanded product lines.

“This move is evidence of John Deere’s commitment to its commercial and golf course customers, and [confirms] that One Source is the right model for our business,” said Gregg Breningmeyer, Director of Sales and Marketing for One Source.

Look for more on this announcement at www.clubandresortbusiness.com and in the April C&RB, as part of a full report from the Golf Industry Show