Sector News

Cargill executive named CEO of U.S. grain handler Andersons

September 10, 2015
Food & Drink

(Reuters) – U.S. grain handler The Andersons Inc, long considered a takeover target in the agribusiness industry, on Wednesday named an executive from larger rival Cargill Inc as its new chief.

The appointment of Patrick Bowe, who was a corporate vice president for Cargill and a leader of its food ingredients unit, as CEO may revive speculation that Andersons could be acquired.

Bowe, 56, will replace Michael Anderson, who has been Andersons’ CEO for 16 years, on Nov. 2, according to a statement. Anderson, whose grandfather founded the Ohio-based company, will remain chairman of the board.

“Mike is not retiring,” company spokeswoman Debra Crow said. “He has decided to take a reduced schedule and stepped down as CEO.”

Analysts have considered Andersons, which has a $950 million market value, to be a target in the farm sector because of its diversified assets, including grain storage facilities and rail cars.

In May, Michael Anderson said the company was not interested in being acquired, after Richardson International, one of Canada’s largest grain handlers, expressed interest in a takeover.

Bowe was not available to discuss his plans for the company, Crow said. In the statement, he said he was looking forward to “capitalizing on the unique opportunities that lie ahead.”

Bowe will earn a base salary of $900,000 and be eligible for bonuses, according to a filing with the U.S. Securities and Exchange Commission. That is a 58 percent increase from Michael Anderson’s base salary last year of $570,000.

Under Bowe’s contract, the terms for severance payments during his first three years on the job will be different from the plan generally available for senior executives, according to the regulatory filing.

If there is a change in control of the company before Bowe finishes three years, he will receive accrued benefits, a year’s worth of outplacement services and continued participation in the company health plan.

The filing did not explain how these conditions differ from the company’s standard terms, and Crow had no immediate comment on the matter.

After three years, Bowe’s severance payments and benefits will conform with those generally available for executives, the filing says.

The farm sector has been under pressure lately from a steep slide in grain prices following massive U.S. harvests. Adjusted net income attributable to Andersons’ for the six months ending on June 30 was $35.2 million, down from $56.4 million last year.

Andersons’ stock price is down about 35 percent this year. Shares were up 2 percent to $34.63 in afternoon trading. (Reporting by Tom Polansek; Editing by Bernard Orr)

comments closed

Related News

February 4, 2023

Unilever names FrieslandCampina’s Hein Schumacher as next CEO

Food & Drink

Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

February 4, 2023

Tetra Pak execs flag plant-based ice cream development hurdles as indulgent offerings expand

Food & Drink

Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.

February 4, 2023

Examining the meaning of eco-labels: Is it time for mandated methodology?

Food & Drink

A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.

How can we help you?

We're easy to reach