Grass-seed companies' merger sets a new course for their Linn operations

By Erik Peterson

For the Gazette-Times

HALSEY - Like many other industries in Oregon, the grass seed industry is facing a number of financial challenges.

The sudden dip in popularity overseas has saturated the seed market and has created unpredictability from one season to the next.

Hoping to counter the downward trend, two grass seed giants, DLF-Trifolium of Denmark and Cebeco Seeds Group of the Netherlands, have merged.

Through the equity purchase, DLF, the world's largest breeder, producer and exporter of cool season quality grasses and clovers, will take over Cebeco and its affiliated companies based in France, Germany, England, the Czech Republic, China and the U.S.

Both companies have North American subsidiaries in Linn County - DLF-Jenks, until recently located in Tangent, and Cebeco International Seeds of Halsey.

"We are truly going to integrate as one company and operate under one roof," DLF International sales manager Brad Dozler said from his Halsey office. "You almost couldn't handpick two more compatible companies. There's very little overlap, which makes it a great opportunity to maximize efficiency."

DLF-Jenks and Cebeco International Seeds will operate under the name DLF International. They are now both located at Cebeco International's Halsey site off of Highway 99E.

Because both are private companies, sales figures could not be obtained. The cost of the acquisition was also not made available.

As separate subsidiaries, DLF-Jenks had its niche in the U.S. forage market, whereas Cebeco International established itself as a major player in overseeding golf lawns and in international markets.

"It's a huge step. The impact really can be viewed globally," Dozler, the former president of Cebeco International Seeds said. "By acquiring Cebeco's market, DLF just significantly increased the gap between them and number two."

Cebeco International, a leading wholesale breeder and producer for turf and forage, was formed as International Seeds Inc. in 1972. In 1988, sale of the company was completed and the name was changed to Cebeco International Seeds.

The new acquisition will allow DLF to expand and diversify its market, particularly overseas where Cebeco has a foothold in the Pacific Rim, China and Argentina, Dozler said.

DLF-Jenks and now DLF International general manager Claus Sass said the merger increases its proprietary production acreage to around 30,000 acres.

The only setback of the venture was the overlap in jobs, Sass said. The companies had to lay off 25 percent of their combined workforce. DLF International now employs 32 people in the area.

"We tried to minimize the trauma," Sass said about notifying employees who were let go. "It was one of the worst days of my life."

The employees received severance packages, Sass said.

By working toward a synergy between the two companies' divisions, Sass said DLF International will operate at maximum efficiency.

"We both had already made our customer base and hoped to have more efficiencies in production," he said. "They were always heavy in the fall market and we were heavy in the spring, so it makes sense to put the two together. Through this, we'll have production all year round."

Both Sass and Dozler are confident the acquisition will help generate more profit through a more diversified market. However, Dozler said the company cannot depend on the market to work itself out of the down times.

"Everybody knows what grass seed industry been through and we're not out of woods just yet," he said. "We will always have problems, but this is a really positive move for both of us."