Tillerman Seeds LLC, a holding company established last year to offer a liquidity path to owners of independent seed companies across the country, has purchased a second seed company.

Tillerman Seeds, based in Greenville, Mich., says it has acquired the assets and real estate of Legacy Seeds Inc., a Scandinavia, Wis.-based producer of alfalfa, corn, wheat and soybean seeds, as well as cover crops. Legacy also has seed operations in Nampa, Idaho.

The transaction allows Legacy Seeds to buy out the ownership stake of retired founder Steve Jensen and another minority partner, Tyler Lee, while also providing resources for growth at the Wisconsin seed firm. The transaction also allows Legacy Seeds to maintain its heritage, operations and all jobs in Wisconsin and Idaho. CEO Bruce Ceranske will remain as an owner and executive leader of Legacy Seeds. Lee will continue to manage the company’s operations in Nampa.

The Legacy Seeds acquisition builds on Tillerman’s October 2017 acquisition of DF Seeds LLC, based in Dansville, Mich. DF Seeds produces soybean and wheat seed for Midwestern microclimates. Both companies also sell popular conventional non-GMO seed lines.

Taken together, the two transactions have created a Midwestern seed company with nearly $40 million in annual revenues and 42 employees, proudly supplying more than 800 farms from seed operations in Wisconsin, Michigan and Idaho.

Combined efforts
Tillerman Seeds plans to operate the acquired companies as stand-alone entities with shared back-office services including accounting, human resources and purchasing. Legacy Seeds and DF Seeds will be able to collaborate on research and development, as well as best business practices for customer service, marketing and cross-selling of product lines to better serve farmers.

The growing seed firm will be led by three agribusiness experts with established industry credentials:

• Bruce Ceranske will continue to lead Legacy Seeds, where he has served as general manager and owner since 2000. Prior to joining Legacy Seeds, Ceranske spent 20 years working for large agricultural companies including Del Monte and Cargill. He has a bachelor’s degree from University of Wisconsin-Stevens Point and served on American Seed Trade Association board.

• Chris Varner will continue to lead DF Seeds, where she has worked since 2009 and been an owner since 2013. Varner has worked in the seed industry for more than 25 years, serving in management and operations positions at two Michigan-based seed farms and at Michigan State University. She holds a bachelor’s degree from Michigan State and a master’s degree in seed business and technology from Iowa State University. She served as president of the Independent Professional Seed Association in 2017.

New opportunities
“This transaction will bring new opportunities for the customers, employees and suppliers of both Legacy Seeds and DF Seeds,” Sheppard says. “These are two strong companies with complementary product lines, similar cultures and a shared laser-like focus on developing seeds that allow farmers in Wisconsin, Minnesota and other Midwestern states to maximize yields.”

As part of the transaction, veteran agribusiness executive Kip Pendleton of Minneapolis-based Pendleton Group LLC will join Tillerman Seeds as executive chairman.

While the $54 billion global seed market is dominated by a handful of large, multinational corporations, there are considerable opportunities for small, independent seed producers to supply domestic and foreign farmers, according to Remos Lenio, partner in Tillerman & Co.

“The large, multinational companies focus on developing seeds that can be sold nationally and internationally, which leaves plenty of room for local firms that focus on developing seeds for specific microclimates and specific grower needs, including conventional non-GMO seeds,” he says. “We intend to acquire local seed firms, especially those with older owners looking to exit the business, so we can continue their heritage and maintain the jobs in the communities where they grew up.”

Source: Tillerman Seeds