Farmers are tasked to grow more food than ever for a rapidly rising global population, which is estimated to surpass 9 billion people by 2050. As a result, agriculture suppliers, including crop protection companies, have become attractive targets. Seed protectors are important tools that help farmers manage their fields. The demand for suppliers in these areas is driving M&A activity in the agriculture sector.
The merger of Land O’Lakes Inc. and United Suppliers Inc., which closed on Aug. 24, is one of a handful of deals that have occurred in the space. Land O’Lakes is known for making butter while United Suppliers owns the Exuro and Amsol/Plus herbicide brands. (Land O'Lakes also agreed to buy marketing company Farmer Lumpe + McClelland recently.)