Washington, D.C.-based United Fresh Produce Association and Newark, Del.-based Produce Marketing Association are once again looking at the potential for a merger.
Steffanie Smith, chief executive officer of River Point Farms, Hermiston, Ore., and immediate past chairwoman of United Fresh, and Mike O’Brien, immediate past PMA chairman and vice president of produce and floral for Schnuck Markets Inc., St. Louis, led the task force considering the merger.
Smith declined to comment on the discussion, but released a statement from the task force.
“Earlier this year our two associations formed a joint task force to look at potential synergies and future opportunities,” according to the statement. “That group has met twice to continue its dialogue.”
The task force presented its findings to the United Fresh and PMA boards, which voted to continue discussions with “outside experts to lead a rigorous process of due diligence,” according to the statement.
United Fresh and PMA staff deferred comment about the process to O’Brien and Smith. O’Brien didn’t return a call on Oct. 20.
Smith said there are 12 participants in the joint task force looking at the possibility of a merger, six from each organization. The names of the participants are not being released, she said.
There is no timeline established, Smith said.
“Both groups agree that the due diligence will dictate the timeline,” she said. “This is not something to be rushed.”
Various industry leaders contacted about the discussions declined to comment.
Tony DiMare, vice president of the DiMare Co., Homestead, Fla., said if there is an opportunity for both organizations to consolidate in some way, that is what they are looking to do.
“Bottom line, the crux is to explore if there are synergies (with the two organizations), and I think there are.”
These recent discussions are not the first time that PMA and United Fresh have considered the possibility of a merger. In 2007, six months of discussions failed to yield a merger agreement.
In 1995, United Fresh leaders proposed creating one new national association. In response to that proposal, PMA offered to absorb United under a plan that contained “non-negotiable” terms and merger talks were eventually abandoned.
— By Tom Karst
