Apr 29, 2011
Hines, Color Spot Sign DealSource: Hine Growers LLC

In a mutually beneficial strategic move, Hines Growers LLC has signed a letter of intent to sell assets from its Fresno, Calif., Chino Valley, Ariz., and Fulshear, Texas, nurseries to Color Spot, a major supplier of annuals in the West and Southwest.

According to Steve Thigpen, CEO of Hines Growers, the transaction allows Hines to rebuild and expand its position in its Western nurseries by increasing production at its strategic locations in California and Oregon.

“This is a milestone in our long range strategy to transform Hines Growers into a strong, progressive nursery company,” he said.

Hines Growers will own and operate the three nurseries until closing in June of this year, at which time Color Spot will purchase the assets of the three facilities and lease the land from Hines Growers.

Hines Growers will continue to serve its customers nationwide from its nurseries in Fallbrook and Winters, Calif., and Forest Grove, Ore. “Focusing on the nursery business for all our customers is the next step in our strategic plan to rebuild Hines,” added Thigpen.

Color Spot, a strong competitor in the annual color business in the West as well as a strong nursery and color supplier in Texas, will develop their own programs as they move forward at the Chino Valley and Fulshear locations.

“Each of the facilities being leased by Color Spot has the capacity for significant business growth,” explained Thigpen. “The purchase enables Color Spot to expand its footprint in several of their markets at a time when they are close to capacity in their existing facilities.”

“We believe, when complete, the asset purchase by Color Spot will strengthen both companies,” he said. “It’s a win-win for both companies.”