In addition to paying $175m in cash, Andersons has agreed to issue $130m worth unregistered shares to Lansing equity holders.
The transaction will see the consolidation of Canadian agricultural company Thompsons Limited and related entities, as they have been jointly owned by Lansing and Andersons.
The deal is expected to strengthen Andersons’ grain business and further diversify its product portfolio.
Andersons president and CEO Pat Bowe said: “This acquisition creates a grain business of highly complementary assets with a greater scale that significantly expands our reach in the agricultural marketplace.
“We firmly believe the union of these core agricultural businesses will allow us to compete more successfully, provide greater value across an expanded platform and grow more profitably. The new, larger organisation will provide significant career opportunities for our employees.”
Established in 1922 in Michigan, Lansing Trade Group specialises in the movement of physical commodities, including grains and feed ingredients in North American and international markets.
Andersons intends to integrate Lansing with The Andersons’ Grain Group.
Lansing Trade Group president and CEO Bill Krueger said: “Combining our talented teams is a very compelling opportunity to unlock potential by bringing together the best of each business.
“We will be able to provide ‘freedom’ pricing tools to the current Lansing producers while leveraging The Andersons’ facilities to merchandise more bushels to enhance our ability to supply our consumptive demand base. In effect, we will be developing a more robust North American supply chain.”
