SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OF 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 25, 1998
THE ANDERSONS, INC.
(Exact name of registrant as specified in its charter)
OHIO 34-1562374
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
480 W. Dussel Drive, Maumee, Ohio 43537
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (419) 893-5050
Item 5:
The Andersons,Inc.
480 W. Dussel Drive
Maumee, Ohio 43537
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Gary Smith Marilyn Windsor
419-891-6417 312-640-6692
FOR IMMEDIATE RELEASE
Wednesday, March 25, 1998
THE ANDERSONS AND CARGILL ANNOUNCE LEASE AGREEMENT
AND MARKETING AGREEMENT FOR TOLEDO
AND MAUMEE ELEVATORS
Maumee, Ohio, March 25, 1998_The Andersons, Inc. (Nasdaq: ANDE) and Cargill,
Inc. (Minneapolis, MN), announced today the signing of a letter of intent to
form a grain-handling and marketing agreement involving the two companies'
grain handling facilities in Maumee and Toledo, Ohio. Under the agreement,
The Andersons will lease Cargill's grain-handling facilities in Toledo and
Maumee and provide on-site management of those facilities in conjunction with
The Andersons' two grain-handling facilities also located in Toledo and
Maumee. The Andersons will focus on grain purchasing, elevator operations and
administrative services, and the Cargill organization will provide world-wide
grain marketing services for the four facilities.
Richard P. Anderson, chairman and chief executive officer of The Andersons,
stated, "The agreement will allow us to operate the four grain-handling
facilities with greater flexibility in terms of logistics and with greater
operational efficiency. We believe this greater efficiency will translate
into direct benefits for both companies' farm and country elevator customers.
The benefits will include critical issues such as faster turnaround time at
the facilities and greater access to the facilities during peak periods. At
the same time, our customers will have direct access to Cargill's global
grain-marketing network - a network that is respected worldwide."
According to Anderson, in addition to the improved service, this agreement
should maximize the overall value of facilities to the customers, the local
community, the port of Toledo and the shareholders of the firms.
"We are pleased to be entering into a closer working relationship with The
Andersons. The Andersons has an excellent track record in working with
producers, cooperatives and country elevators in the Toledo area to originate
and handle grain. The company also has an excellent reputation as an employer
and as an important contributor to this community. These are values that we
share; we look forward to working with The Andersons to find the best domestic
and international markets for area producers," said David Raisbeck, Cargill
executive vice president and president of the company's Trading Group.
The agreement is expected to be finalized and operational by June 1, 1998.
Terms of the agreement were not disclosed. This agreement does not impact
either of the companies other grain handling operations.
This release contains forward-looking statements, including statements with
respect to anticipated revenue growth, adequacy of cash flows and
profitability. These statements involve risks and uncertainties that could
cause actual results to differ materially, including without limitation,
economic, weather and competitive conditions, risks associated with
acquisitions and the risk factors set forth from time to time in the company's
filing with the Securities and Exchange Commission.
The Andersons, Inc. is a respected leader and dominant regional player in
grain merchandising. This strong position in its basic industry has allowed
The Andersons to diversify into other agribusiness operations, railcar leasing
and repairs, general merchandise retailing and other processing and
manufacturing businesses. The company has been in operation since 1947.
Cargill is an international marketer, processor and distributor of
agricultural, food, financial and industrial products with 79,000 employees in
more than 1,000 locations in 72 countries and with business activities in more
than 100 countries.
For further information regarding The Andersons free of charge via fax dial
1-800-PRO-INFO and enter company code "ANDE."
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
The Andersons, Inc.
Date March 30, 1998 By /s/Richard P. Anderson
Richard P. Anderson
Chairman and Chief Executive Officer
