b'Though Independents are Consolidating, Their Strength GrowsThe seed industry continues to be a space that rapidly consolidatesin the independent space, companies are finding strength in partnerships.Alex MartinIF YOUVE BEENin the seed indus- Association (IPSA), in a previous Seedin 2018 when the company was acquired try long enough, youll know that overWorld article. Its for a whole host ofby DLFnot only did it provide an the past few decades, the industry hasreasons: business is tougher, companiesopportunity to grow the business, it also undergone rapid consolidation.have to be able to mark growth and wereprovided a strategic exit plan for the Were seeing a lot less competitionseeing retirements and succession plan- future of the company.and a lot more consolidation in manyning play into this. Part of the exit strategy for Rural industriesnot just seeds, says PhilMergers and acquisitions, in additionAmerican Fund with La Crosse Seed was Howard, professor in the Department ofto succession planning, are proving to beto eventually find an exit partner that Community Sustainability at Michiganhelpful for businesses experiencing lowerwould take La Crosse into the next era of State University, in a recent Seed Worldmargins, but it also provides new ways toits existence, says Dan Foor, senior vice Strategy Webinar. Theres a trendexpand and grow an independent busi- president of Distribution at DLF North towards fewer and larger firms. ness through partnership. America. At the same time, DLF was Within the last 10 years, consolida- looking for an opportunity to expand its tion in larger firms has been prominent,Partnering with Purpose presence in the North American market, and large firms arent the only companiesWhy are independents finding growthand in particular, into the distribution finding benefits in mergers and acquisi- through mergers and acquisitions lately?space.tions. Independents are finding strengthAs competition and business overall getAs the largest forage and turf seed in collaboration as well.tougher in the seed space, collaborationdevelopment company in the world While weve seen consolidationallows independents to think outside ofwith a very strong R&D backbone, Foor recently, its not necessarily a sharpthe box while preparing the companybelieved that DLF would make an excel-increase, said Todd Martin, CEO ofstrategically for the future. lent partner to help bring La Crosse into the Independent Professional SeedThat was the case for La Crosse Seedits next generation of life. 10/ SEEDWORLD.COMJANUARY 2023'