We are pleased to announce the next step in our strategic plan to focus on the nursery business in the Western Region of the United States and build our product offerings for our customers from our strategically located sites in California and Oregon.
On April 19th Hines signed a letter of intent to sell assets from our Fresno, California, Chino Valley, Arizona, and Fulshear, Texas nurseries to Color Spot.
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 lease and go forward at the Chino Valley, Arizona, and Fulshear, Texas locations. Each of these facilities has the capacity for significant business growth which enables Color Spot to expand its footprint in several of their strategic markets at a time when they have come close to capacity in their existing 10 production facilities. The transaction also allows Hines to rebuild and expand its position in the West by expanding production at its strategic locations in California and Oregon. We believe that when complete, the asset purchase by Color Spot will strengthen both companies. Color Spot has 60 days to complete their due diligence and we expect to close the transaction during June 2011.
Hines Growers LLC will continue to own and operate the three nurseries until closing and thereafter will own and continue to operate its nurseries in Fallbrook, California; Winters, California; and Forest Grove, Oregon. We remain committed to supplying our customers with the highest quality nursery, perennial and specialty products.
We will issue regular communications regarding our strategies and milestones as we transform Hines Growers LLC into a strong, progressive nursery company.
Source: Hines Growers LLC