Horizon Bank provided senior debt financing and a revolving credit facility to support Tillerman Seeds’ acquisition of the assets and real estate of Legacy Seeds, a Scandinavia, WI-based producer of alfalfa, corn, wheat and soybean seeds. Private equity fund Open Prairie Ventures also provided subordinated debt financing to support the transaction.
Legacy Seeds bought out the ownership stake of retired founder Steve Jensen and another minority partner, Tyler Lee, while providing resources for growth at the firm. Legacy Seeds will maintain its operations and all its employees in Wisconsin and Idaho. CEO Bruce Ceranske will stay as an owner and executive leader of the company, while Lee manages the company’s operations in Nampa, ID.
Tillerman previously acquired Dansville, MI-based DF Seeds in October 2017. Taken together, the two transactions created a seed company with nearly $40 million in annual revenues and 42 employees.
Tillerman Seeds plans to operate the acquired companies as standalone entities with shared back-office services, including accounting, human resources and purchasing. Legacy Seeds and DF Seeds will also collaborate on research and development as well as best business practices for customer service, marketing and cross-selling of product lines.
“This transaction will bring new opportunities for the customers, employees and suppliers of both Legacy Seeds and DF Seeds,” said James Sheppard, CEO of Tillerman. “These are two strong companies with complementary product lines, similar cultures and a shared laser-like focus on developing seeds that allow farmers in Michigan, Wisconsin, Minnesota and other Midwestern states to maximize yields.
Grand Rapids, MI-based Tillerman & Co provided structuring, negotiation and capital formation for both transactions and will provide financial management for Tillerman Seeds until a permanent chief financial officer is hired.
The Grand Rapids office of Barnes & Thornburg provided legal counsel to Tillerman Seeds on the transaction.
Established in 2017, Tillerman Seeds is a holding company that offers a liquidity path to owners of small, regional independent seed companies across the country.
