SALINAS, Calif.– Floramoda, Inc., a subsidiary of Monterey Peninsula Horticulture, Inc. (MPH), announced today that it has finalized the purchase of the operating business and accompanying assets of Nurserymen’s Exchange, Inc. (NEI). NEI is a leading wholesaler of indoor potted blooming plants, specialty foliage, and edible plants in the U.S. that markets under the BloomRite® brand. Nurserymen’s Exchange will continue to operate under that name at its existing location.
“In combining the best creative and distribution strengths of our organizations, the new operating group will become the third largest greenhouse grower in the industry,” stated Charles Kosmont, CEO of MPH since 1986. “The acquisition allows us to preserve the long vendor and customer relationships NEI has developed over 70 years under a strategic partner with a strong financial foundation. NEI has excellent employees whose sales and marketing strengths are widely respected. By optimizing our strengths, we intend to develop a ‘one-stop’ solution experience and new product opportunities for the benefit of customers and vendors alike. In an industry that has seen considerable deterioration in recent years, our expanded organization shines a bright light on the future.”
The company also took a bold step forward by announcing its plans to introduce an institute for the advancement of floriculture worldwide. The new organization, preliminarily titled the Institute for Floriculture Innovation – A Global Consortium, is designed to bring the best minds together from multiple industries and academia, including horticulture, food, fashion, and design to drive innovation throughout the entire indoor potted blooming plant arena. During the next nine months, Kosmont and his team will seek to attract participants from across the globe and at all levels.
“Our new company gives us a rare opportunity to do more in the industry than just combine our best talents and resources,” Kosmont asserted. “By establishing the Institute for Floriculture Innovation, we can create a common ground on which the industry can build for the future. Our intent is to work broadly to reach the best minds in our industry regardless of size. We are aiming to be inclusive rather than exclusive. The Institute is meant to overcome competitive factors in favor of stimulating new ideas that can increase demand and make floriculture as much a part of daily life as eating breakfast. The new consortium should result in implementable ideas that revitalize floriculture as we know it while it serves as an incubator for the next generation.
“We believe we’re the right group to instigate this kind of consortium because of our broad resources in Europe, Asia, India, South America, and the Middle East developed through decades of work. Yes, we have a growing company. But it’s equally important that our entire industry grows. And the Institute for Floriculture Innovation is designed to meet that need.”
Focusing internally, Kosmont also announced today that Justin Dautoff, former chief operating officer of NEI, will serve as President of the new Nurserymen’s Exchange. “We’re looking forward to working with Charles’ team as we develop the best mix of products and merchandising,” Dautoff noted. “Our people are steadfast and knowledgeable and should be an important asset to MPH for years to come. This is the best outcome to allow us to continue to serve our customers and provide business to the vendors who have been so supportive over the years. I speak for my entire family, which founded NEI, when I say that we’re glad that our tradition of excellence and innovation will continue.”
Floramoda has retained NEI’s 141 ongoing employees who will receive a full complement of benefits, including seniority. Sales and purchasing teams are reaching out to customers and vendors immediately to confirm their support going forward.
The remaining assets of Nurserymen’s Exchange, Inc. remain under Chapter 11 protection and will be identified under the name Tally One, Inc. The disposition of these assets, including certain large land parcels, will fund the estate and be used to pay creditor claims.
Assisting the companies in the sale process were Pachulski Stang Ziehl & Jones LLP and Burnett & Mathews LLP for MPH. NEI retained Katten Muchin Rosenman LLP as special corporate counsel; FocalPoint Partners LLC as its investment banker; and C&A, Inc. as turnaround consultants.
For additional information, please visit www.rocketfarms.com or www.bloomrite.com.
About Monterey Peninsula Horticulture, Inc.
Founded in Salinas, Calif. in 1981, Monterey Peninsula Horticulture, Inc., operates three subsidiaries: Rocket Farms, an industry leader recognized for innovative methods and quality potted ornamentals-particularly orchids and poinsettias; Growers Transplanting, a technology leader widening the applications and capabilities of automated transplanting for fruits and vegetables; and Floramoda, Inc., which now operates under the Nurserymen’s Exchange name.
About Nurserymen’s Exchange, Inc.
Located in Half Moon Bay, Nurserymen’s Exchange has been a leading wholesaler of indoor potted blooming, specialty foliage, and edible plants since 1941. Today NEI services a broad customer base consisting of major grocery retailers, mass merchandisers, home and garden centers, and independent operators. The company is known for its BloomRite® brand and signature crops including Parade®, Victory®, Palace® Roses, Get Mee® Campanula, Sun Star, and European Tree®.
Source: Monterey Peninsula Horticulture, Inc.
