The Future Of Pinnacle Agriculture

In July, Pinnacle Agriculture announced its board started to explore strategic alternatives for the company. This includes a potential sale of the company. ( Pinnacle Agriculture )

In July, Pinnacle Agriculture announced its board started to explore strategic alternatives for the company. This includes a potential sale of the company. 

In the announcement, the company referenced “unsolicited expressions of interest in Pinnacle from several parties both within and outside of the agriculture industry.”

Pinnacle was formed in 2012, is owned by private equity firm Apollo, and operates ag retail locations in 27 states. Forty of its locations were “start up” businesses, with the most recent one announced in June 2019. 

This past week in a discussion with AgPro, A company representative reiterated the language from this summer’s announcement, “the company’s board of managers has not set a timetable for completion of this review. Pinnacle does not intend to comment further unless and until the board of managers has approved a specific course of action or has otherwise determined that further disclosures are appropriate or required.” 

However, the company’s footprint may be changing. Reshmi Basu, restructuring editor at Debtwire says the company has reportedly identified locations to close. 

The company’s performance last quarter beat some expectations but still suffered due to the weather affecting the 2019 planting and growing season. Year-over-year revenue declined 6.3% in the company’s second quarter 2019, which ended June 30.

The company did a recapitalization in 2017, and today Basu reports it is leveraged 11.8 times. She says the biggest weakness for the company has been in crop chemistry.

Pinnacle has two proprietary input brands: Innvictis Crop Care and Mission Seed Solutions.
 

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