Today, Barenbrug USA concluded the sale
of its 'Pittsburgh Division' to IKEX Inc. IKEX is a distributor
for Barenbrug USA and involved in distribution of grass seed,
erosion control products and pesticides. IKEX is headquartered
in North Carolina and has locations in Maryland, Georgia and now
Pennsylvania. It is the desire of both Barenbrug USA and IKEX to
develop a long lasting relationship in which Barenbrug USA
supplies high quality grass seed varieties to IKEX and the IKEX
locations serve as high quality distributors of a multiple
product line to the lawn and landscape industry.
For the past three years, Barenbrug USA has pursued a
restructuring program that focuses their strengths on grass
variety breeding, seed production, seed processing and wholesale
marketing. The distribution of grass seed products is more
effective through established distributors such as IKEX.
Customers can then also access a more complete line of
complimentary products through this distribution. This
restructuring therefore benefits all companies involved.
As part of the agreement, IKEX has agreed to maintain the
employment of the Pittsburgh employees. In the past six years,
the Barenbrug USA - Pittsburgh employees have proven to be very
capable of servicing the Pittsburgh market. With the inclusion
of the new product lines under the new IKEX management, the
future of IKEX - Pittsburgh and its employees is extremely good.
Roeland Kapsenberg states, "I feel very comfortable with the
commitment IKEX has displayed and I am sure that this change is
a great opportunity for the future of the Pittsburgh employees'
and customers".
After the closure of the Ogdensburg (NJ) and Chantilly (VA)
facilities in the fall of 2000, the Fresno (CA) warehouse in
August of 2002 and Barenbrug Colorado in October of 2002, the
sale of the Pittsburgh location to IKEX concludes the
implementation of Barenbrug USA's strategy to focus on breeding,
production and marketing. Barenbrug USA has now divested itself
completely from the regional distribution of its products, only
selling seed on a wholesale basis from its production center and
main office facility in Oregon. Barenbrug USA has developed
strong relationships with regional seed companies for the
distribution of its product lines. This allows Barenbrug USA to
focus its capital and know-how in the area where it is best:
GREAT IN GRASS.
