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Greenhouse Grower: Altman Plants Acquires Color Spot Nurseries

 

Original article published by Greenhouse Grower

Jan. 3, 2019

Story by Laura Drotleff

Ken and Deena Altman

Ken and Deena Altman

The sun set on 2018 with one of the biggest deals in floriculture industry history. Altman Plants, based in Vista, CA, closed a deal on Dec. 21 to purchase the remaining assets of Color Spot Nurseries from Wells Fargo. Joining Altman Plants’ additions in 2018 of a 20-acre facility in Salinas, CA, and 30-acres of new greenhouses at its Lake Mathews, CA, location, the acquisition of Color Spot’s remaining assets almost doubles the size of Altman Plants, to put the operation in the No.1 spot on Greenhouse Grower’s Top 100 Growers list.

Before Color Spot filed Chapter 11 bankruptcy and restructured, the company was listed with 21 million square feet of environmentally controlled space, 2,603 acres of outdoor space, and 206 acres of shade houses, and as of May 2018 was the largest grower in the country, according to Greenhouse Grower‘s 2018 Top 100 Growers Survey. Color Spot held that No. 1 position since the mid-90s. In 2018, Altman Plants was the second largest growing operation in the U.S.

After divesting ownership of Hines Nurseries in August and being acquired temporarily by Wells Fargo, Color Spot Nurseries was still one of the largest growers and distributors of live plants in the country, delivering bedding plants, perennials, annuals, flowering tropicals, ornamental shrubs, poinsettias, and other holiday plants to large and small retailers and wholesalers in the Western, Southwestern, and Gulf regions of the U.S. Founded in 1983, Color Spot employed 1,600 employees who fulfilled the needs of hundreds of retail and commercial customers in 26 states.

Color Spot’s five remaining production facilities in California and Texas, comprising an estimated 11 million square feet of environmentally controlled space and 1,500 acres of outdoor space, now folds into Altman Plants, which even before this acquisition owned more than 2,100 acres in several states.  Altman Plants’ full scope of production includes ornamental bedding plants, container perennials, woody ornamentals, and potted foliage, as well as close to 700 acres of succulent and stock production.

Altman Plants Will Expand Retail Footprint

While all of the details are still being worked out, including exactly how large this acquisition makes Altman Plants, we caught up with Ken Altman, CEO and Co-President of Altman Plants to find out about some of the particulars that he could discuss. He confirmed that Altman Plants will absorb the Color Spot Nurseries facilities in Fallbrook, Salinas, and Lodi, CA, and in Troup and San Antonio, TX, as well as three locations in Waco, Walnut Springs, and Fort Davis, TX, that were previously closed and will remain closed for now. All of the facilities will be renamed Altman Plants, except for the San Antonio woody ornamentals operation, which will be “tightly interwoven” with Altman Plants, but operated under its former name, Lone Star Growers.

Altman Plants’ production

All of the facilities will continue growing the same crops they were producing before, serving most of the same customers with plant products and merchandising services. Most of the customers Color Spot was servicing were also already Altman Plants customers, including home improvement stores, warehouse chains, grocery stores, and independent garden centers, so the sale allows the company to expand its service to those customers.

Altman Plants leadership is now busy with integrating the two companies, including hiring on nearly all of the Color Spot Nurseries employees and joining the two companies into one blended culture. The top management group from Color Spot will not stay on, as those positions are already filled; however, the remaining 1,600 employees will be welcomed to Altman Plants, adding to the company’s current 3,000 employees.

Other integration priorities include deciding which operating system to use. Color Spot was using SAP while Altman Plants uses a homegrown system called Evolution. There will also be ample opportunities to refresh the Color Spot facilities with automation and new processes over time, Altman says.

In addition to Altman Plants’ significant growth in 2018, the Altman family invested heavily in the young plants business in late 2016 and early 2017 with its acquisition of both The Plug Connection and EuroAmerican Propagators, which were integrated together as The Plug Connection. Altman says in addition to serving Altman Plants’ young plants needs, The Plug Connection is rapidly attaining a wide variety of new young plants customers to provide them with plugs, liners, grafted vegetables, and tissue culture liners.

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San Diego Home/Garden Lifestyles Magazine: Altman hybrids

Our hybrids Echeveria ‘Neon Breakers’ and Aloe ‘Blizzard’ were among the recently featured succulents in the March 2018 issue of San Diego Home/Garden Lifestyles magazine (garden planner section)!

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Colorado Nursery and Greenhouse Association: LooseLeaf

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Altman Plants’ Double 10 rose makes cover of American Nurseryman

Double 10 rose (now True Passion) designated a 2018 A.R.T.S.® Master Rose by the American Rose Trials for Sustainability®
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Altman Plants purchases EuroAmerican inventory, in escrow on property

Original Article published by Garden Center magazine

March 1, 2017

Story by Michelle Simakis

The wholesale nursery headquartered in Vista, Calif., has been caring for EuroAmerican Propagators’ plants as an independent contractor since EuroAmerican filed for bankruptcy at the end of January.


Altman Plants, a wholesale nursery based in Vista, Calif., operating several locations in five states, has purchased plant inventory from the property of EuroAmerican Propagators, which filed for Chapter 7 bankruptcy protection at the end of January. The $200,000 cash sale, which also includes pots, trays and boxes, was approved under an emergency motion by the U.S. Bankruptcy Court Southern District of California on Feb. 10, 2017, because the inventory includes live goods that are perishable, according to court documents.

The sale does not include tags and plant labels, and there are restrictions and instructions for plants deemed “Third Party Plants” or “Royalty Plants.” In one inventory list EuroAmerican gave to the trustee overseeing the case, it noted more than 1,700 varieties of plants, totaling 2.5 million individual plants, according to court documents. It is unclear exactly how many are included in the sale or when that inventory was conducted.

Ken Altman, president of Altman Plants, said he is in escrow on a land purchase as well from owner Jerry Church, co-founder of EuroAmerican. Altman said he bought Plug Connection in October, and plans to use the 55 acres of EuroAmerican space primarily for Plug Connection’s young plant production. Altman has already reached out and hired “quite a few” former EuroAmerican employees, and plans to continue adding to staff as production expands.

“Sometimes when these things happen, facilities don’t look as good, but John [Rader, EuroAmerican COO and co-founder] and Jerry Church really kept everything up, and it’s in great shape,” Altman said. “This is a facility that’s very well set up for young plants and allows us to expand Plug Connection very easily.

“We don’t have full plans yet on what we are going to do, although there was a succulent liner program there, and we’re probably going to continue that,” Altman added. “Altman Plants is a large finished succulent producer, and we’ve been trying to figure out how we can help other growers. We have lots of stock, we know the plants, and we have new introductions from our own breeding. We’ll have a robust offering.”

The trustee appointed to EuroAmerican’s case reached out to Altman Plants, hoping the company could serve as an independent contractor and care for the plants after EuroAmerican shut down its operations Jan. 24. Altman Plants agreed and was paid a flat fee of $5,000 per week starting Jan. 26, which ended after the inventory sale closed, according to court documents.

ALSO READ: Success in stewardship: A reclamation system allows Altman Plants to reuse more than 100 million gallons of water annually.

EuroAmerican Propagators, which was a young plant and retail-ready producer for more than 20 brands, was struggling long before filing for bankruptcy at the end of January. The company stopped paying wages to at least 238 employees starting with the payroll scheduled for Nov. 28, 2016, according to court documents. Former employees who wished to remain anonymous confirmed this, though their dates differ from court records.

Because it is unlawful to sell goods that are produced by employees who are not paid at least the federal minimum wage under the Fair Labor Standards Act, the Department of Labor filed an action on Jan. 24. The action designated the inventory “hot goods,” meaning that plants on EuroAmerican property could not be shipped or re-sold, and customers of EuroAmerican who purchased plants were prohibited from shipping or re-selling these plants until “restitution of the wages owed to [EuroAmerican] workers has been made,” according to court documents.

However, the sale of the plants to Altman was approved, and that permits Altman to sell those plants free and clear of interests of creditors. Proceeds Altman receives from selling the plants will not need to be redirected to the Department of Labor, either, according to court documents.

The Department of Labor has not responded to multiple requests for comment about the status of their action regarding the unpaid wages. Lawyers working on the case and John Rader also did not respond immediately to our follow-up requests for comments.

Some plants on the EuroAmerican property from about 26 companies were not actually owned by EuroAmerican, but were designated in contracts as “testing agreements” or “propagation agreements” and are considered intellectual property, according to court documents. Companies who fall into this category have three options: Altman can destroy the plants; the companies can pick up their plants; or Altman can continue to have possession of plants until pending negotiation of a license with Altman. Companies with plants in trial gardens can either ask Altman to destroy them or pick them up, Altman says. There are also a handful of companies with plants designated as “Royalty Plants” that have different stipulations, but like the third party plants, Altman does not have permission to sell them under the agreement unless they first obtain permission.

“We’re working on those agreements,” Altman says. “Many people are giving us the agreement so that we can sell the plants and pay them their royalties.”

They’ve also been working with companies that had previously ordered plants from EuroAmerican, Altman says.

“To the extent to that the inventory is in shape, we’re trying to supply them with that inventory. But there was a pretty long period between the bankruptcy filing and when the inventory was purchased by us,” Altman says. “For young plants, that two to three weeks is pretty critical. To the extent that we can, we’ll help them out.”

This is all part of the process of Chapter 7 bankruptcy, which traditionally ends in liquidation, with a trustee overseeing the distribution of non-exempt property to creditors. Dean T. Kirby Jr., a lawyer representing the trustee on the case, said in early February that they were trying to determine the value of the plants and that the business was being liquidated. The court documents indicate EuroAmerican has more than 350 listed creditors, and its liabilities range from $1 million to $10 million.

Although Altman is excited about the opportunity to expand on EuroAmerican’s former property, he is not happy about the circumstances.

“It’s just a shame because EuroAmerican has been such a great nursery, and produced so many good plants and introduced so many programs. I hate to see that part of this happening. I know John and Jerry really well, and it’s an unfortunate thing,” Altman says.

He’s working on reaching out to breeders to see if he can work out agreements.

“With this increased young plant facility, we can expand the resources of Plug Connection. We’re talking to various breeders to make agreements to propagate their plants,” he says. “There are breeders’ plants we’d like to see in the industry, and we’re happy to work with them. We like plants, and when we see good plants, we want to grow them.”

 

This is a developing story. Keep checking back for updates.

 

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How Altman Plants is beating the drought

Original Article published by Nursery Management

Dec. 2016 Nursery Management
Story by Kelli Rodda
Photos by Joshuah Rubio

A reclamation system allows the California nursery to reuse more than 100 million gallons of water annually.s


 

Lack of water is a painful reality for California residents and businesses. In 2013, as the state experienced the driest year on record, Altman Plants dusted off a water reclamation plan it had been contemplating for a few years.

“We were concerned with the long-term water supply, concerned with the rising cost of water, and wanted to make sure we were protected against a short-term interruption of supply,” says Jim Hessler, Altman’s director of West Coast operations.

In 2014, construction began on the large-scale water reclamation system at the grower’s Lake Mathews location in Southern California’s Riverside County. The Lake Mathews site houses 420 acres of container production and relies solely on municipal water to irrigate plants. Altman constructed a new on-site storage facility, lined an existing reservoir, installed two pumping plants and a treatment facility.

The nursery is designed to capture all the runoff from the container beds. All beds are covered with ground cloth, and most beds have plastic under the ground cloth. Irrigation runoff flows via gravity into three ponds through a system of channels and canals, then ends up in a 10-acre-foot basin at the lowest point in the nursery. The canals and channels are also lined so the nursery doesn’t lose any water.

First, irrigation runoff is captured in the remedial pond. Next, runoff travels to a second pond complete with natural vegetation of cattails and barley to help mitigate excess nutrients and algae. As water travels through the main canal, canna boxes help remove nitrates and fertilizer runoff.

“The main canal is the backbone that everything feeds into, and it’s almost 2 miles from end to end, with many more miles of small channels feeding into it,” Hessler says.

Left: Altman’s Lake Mathews location relies solely on municipal water. With the reclamation system, the nursery to date has recycled 200 million gallons of water. Right: Canna boxes, located at certain points along the canals, help remediate nitrates from the water as it flows toward the final holding basin. 

 

Water is stored in a third holding pond prior to undergoing sand filtration and acid injections to lower pH. Water is stored in the final holding pond and treated with chlorine dioxide to control pathogens prior to reuse.

“We test the water right past the pumps and test it at various locations throughout the nursery for the right amount of chlorine dioxide,” Hessler explains.

On a really hot day when water needs are high, the nursery can generate about 1 million gallons of water. Since the launch of the reclamation system, Altman has recycled about 200 million gallons of water. And the water savings from the system has exceeded Altman’s goal by 5.5 percent.

“Our engineering was better than we thought it would be,” Hessler says. “Our field design, channel design, the way we train the irrigators, and the maintenance of the entire irrigation system have all played a role. Up to this point, we thought we’d recycle and remediate about 100 million gallons, and it ended up being double that. We still use municipal water, just a lot less of it.”

The reclamation system exceeded the nursery’s water saving goals thanks in part to advanced engineering, as well as from training irrigators and the overall maintenance of the system.

 

Hessler adds that two key players in the success of this system are the facilities manager and the technical services manager, who are watching
the system on a daily basis.

A large cultural change took place in regards to irrigating once the system was operational.

“In most jobs throughout the nursery, the more you do, the better — sales, planting, or weeding. It’s the opposite with irrigating, and there was a lot of education that went into training irrigators how much water needed to be applied throughout the nursery,” Hessler recalls.

The majority of the nursery uses overhead irrigation, and Altman has changed to more efficient sprinklers.

“This has been an evolving system,” Hessler says. “And because municipal water is not the ideal quality for plants – high pH, high alkalinity and high EC – we’ve had to develop techniques for growing with less-than-perfect water. The water we use impacts our selection of soils and it’s also a factor in our choices of fertilizers for certain crops.”

To complement the reclamation system, Altman is installing sensors in every field to monitor soil moisture. Each field, which is generally one-third of an acre, will have one or two moisture sensors, depending on plant material and container sizes. Based on data from the sensors, the nursery will prioritize the areas that need to be irrigated first. About a quarter of the nursery is equipped with the sensors, and another quarter is almost complete. With the sensors in place, the nursery discovered that over a four-week period, it saves three irrigation applications, and each application equals about 4,000 gallons of water, Hessler says.

Prior to the reclamation system, Altman used basins to capture the runoff, but the nursery was unable to reuse the water. And five years ago, the nursery cut its water use in half.

Left: Miles of canals are an integral part of Altman Plants’ water reclamation system. Right: Altman uses a number of natural remediation techniques, including cattails and barley to help mitigate excess nutrients and algae.

“Being mindful of the need for water conservation and being on the leading edge of water conservation research is part of our DNA,” he adds.

 

 

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California Bountiful Magazine: Working with—and for—the land

Original Article published by California Bountiful magazine

Jan./Feb. 2016 California Bountiful magazine
Story by Tracy Sellers
Photos by Paolo Vescia

Farmers recognized for conservation practices


 

Farmers and ranchers are often called stewards of the land because of their close connection to it. They hold true to the belief that they can and must enhance natural resources and protect the environment, while simultaneously producing food, fiber and energy for a growing world population.

The Leopold Conservation Award honors landowners who demonstrate such a commitment, including 2015 recipients Jim and Mary Rickert of Shasta County.

“Winning this award is validation that our life’s philosophies are being recognized,” Mary Rickert said. “It’s not about Jim and me; it’s about the people we work with, the animals we look after and the land we care for.”

Ken and Matt Altman of San Diego and Riverside counties and Bruce Hafenfeld of Kern County were finalists for the 2015 award. In California, the Leopold Conservation Award is presented by the Sand County Foundation, California Farm Bureau Federation and Sustainable Conservation. The S.D. Bechtel Jr. Foundation and the Nature Conservancy are major sponsors as well.

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Matt Altman, left, and father Ken Altman have implemented a number of efficiencies at Altman Specialty Plants to conserve resources. The family also founded a nonprofit center for researching and teaching sustainable horticultural practices.

 

Ken and Matt Altman

Altman Specialty Plants

Riverside and San Diego Counties

 

What began as an avid interest in plants for husband and wife Ken and Deena Altman is now a wholesale nursery business that encompasses more than 1,700 acres in six states. Altman Specialty Plants, today one of the nation’s largest horticultural growers, specializes in drought-tolerant and water-efficient plants.

Ken Altman and his son, Matt, manage the company with a careful eye on conserving resources.

The nurseries are retrofitted with water- and energyefficient irrigation systems that reduce water use by 50 percent per acre, and soil-moisture sensors are being installed in container plants to further decrease water use. In addition, Altman Plants raises 5,000 plant species using integrated pest management, which controls pests in ways that minimize risks to people and the environment. The Altmans also founded the Center for Applied Horticultural Research, a nonprofit research and teaching center dedicated to advancing a sustainable horticulture industry.

In 2014, the Altmans embarked on their biggest project yet: a water recycling system at their Riverside County site that captures irrigation runoff, treats it and reuses the water.

“As a farm and nursery, we’re reliant on water, and over the last five years, we’ve seen water become more and more limited here in California,” Matt Altman said. “We took it upon ourselves to ensure we had access to water.”

The Altmans recycle and reuse 1 million gallons of water a day. They say they hope the public and other nursery growers are able to benefit from their approach to water management.

“There’s really nothing better than being able to do a good job with family, share your success and provide knowledge to others,” Ken Altman said.

 

 

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GrowerTalks’ Acres Online: Inside Altman’s and Deena’s Art

Original Article published by GrowerTalks’ Acres Online

November 18, 2016

 

My trip to Altman Plants

I like doing things at the last minute. Just-in-time delivery is how I justify my tendency to procrastinate. Which is why I had to do a one-day, redeye-flight trip to Southern California this week to get the cover story for the December GrowerTalks (which goes to the printer Monday—plenty of time!).

Our subject? Altman Plants, which is, as best as we can tell, the world’s largest grower of cacti and succulents. We wanted to talk to owner Ken Altman about how he and his wife, Deena, got into succulents 40 years before the current succulent craze hit, and how they’ve been able to capitalize on their current popularity. Deena has stepped back from the day-to-day of the business so I didn’t expect to get to interview her, too. But apparently she was compelled enough by my list of questions to joined us for the interview in their succulent-surrounded hilltop back yard.

 

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A few highlights:

 

– Their love of succulents started in the early 1970s when a cactus growing on Deena’s apartment windowsill unexpectedly bloomed. “I think it was that flower that just took our hearts away,” Ken says.

– Deena grew up hating the nursery business “with a passion.” That’s because her parents had a “teeny, weeny” rare plant nursery, and Deena had to work there as a child. But high school sweetheart Ken, a plant enthusiast since the age of six or seven, discovered the nursery and was completely enthralled by it. Recalls Deena, “The rest of our time before we started [Altman Specialty Plants], he would say to me, “Can I quit school and start a nursery?” And I’d say “No, no! We’re not going to do that!” (Ken was in grad school studying psychology. He eventually earned his doctorate.)

– Their first foray into selling plants was via catalog. Their backyard plant collection had gotten so big, they decided to print a small catalog and offer their unusual specimens for sale. How did Deena justify this? “That’s not a nursery. That’s just mail order,” she told herself.

– New product development is their lifeblood. Succulents weren’t always the hot sellers they are today. In fact, it wasn’t too long ago when they could hardly give them away, Deena admits. So they got very good at developing new products, new packaging and new uses, such as a full line of low-cost landscape succulents. I spotted this cool new item, a crassula (jade plant) topiary, on the deck outside their office.

 

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Deena’s art

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What few people know about me is that I was raised by a professional artist who managed galleries and gave art lessons, so I had a pencil or brush in my hand from a very early age. I never pursued painting, instead choosing writing, music, woodworking and gardening as my creative outlets. But I know good art when I see it, and I greatly admire Deena’s talent with watercolors.

I mentioned that Deena has stepped back from the day-to-day of running a big nursery. She did that to finally try her hand at painting—something she’s always felt she had a knack for, she just never had the time to find out. So after giving her nursery duties over to others (Ken says it took five people to replace her), she set up a home studio and began taking lessons, quickly discovering her latent talent.

She’s good enough, in fact, to have been invited to participate in an international juried watercolor exhibition—a high honor!

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Greenhouse Grower: Altman Plants Saves Millions Of Gallons Of Water Through Recycling Program

Original Article:
ALTMAN PLANTS SAVES MILLIONS OF GALLONS OF WATER THROUGH RECYCLING PROGRAM
Altman Plants is on a mission to prove that, despite California’s drought conditions, it is possible to save water while still maintaining the ability to irrigate your plants sufficiently.

The company, which ranks third on Greenhouse Grower’s 2016 Top 100 Growers list, hosted a media day on Monday, October 3, to demonstrate the significant water savings it is seeing as a result of an innovative, on-site water-recycling program that captures irrigation runoff for reuse on plants and lower the company’s water use. This month, Altman celebrated more than 100 million gallons of water saved since the reuse program began operation.

Less than two years ago, Altman Plants secured grant funding from Western Municipal Water District and The Metropolitan Water District of Southern California to implement a water-reuse system to water the nursery’s 400 acres of plants. The project includes a water recycling program with the ability to capture nursery irrigation runoff in lined ditches and reservoirs. The water is then stored and reused to water the nursery’s plants.

“The partnership between Altman Plants, Western, and Metropolitan is evidence that rebate programs can result in substantial water savings,” says Tim Barr, Western’s Director of Water Resources. “Programs such as this one can be used as examples that demonstrate innovation in a time when water resources are scarce. Additionally, many of the plants sold by the nursery are drought tolerant. Our customers purchase the plants and use them to replace water-thirsty landscaping. The project comes back full circle.”

As one of Western’s larger water volume business customers, Altman Plants reuses approximately 360 acre-feet of water, which is equivalent to more than 117 million gallons in annual potable water savings. The associated water savings actually exceeds the project’s goal by 5.5%.

“As a company, Altman Plants has always taken an interest in water savings. We realize that we can’t create more water, and the cost continues to increase,” says Jim Hessler, Altman Plants’ Director of West Coast Operations. “We understood the reality of limited water resources years ago. Five years earlier, prior to starting the water recycling program, we had already cut our water use in half. Our current water reuse system takes a unique approach to water management and is being used as part of a national study to create best management practices for growers.”

 

BY BRIAN SPARKS / SENIOR EDITOR AND SENIOR ONLINE EDITOR FOR GREENHOUSE GROWER

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Floral Daily – US: Altman, Ecke MS/Ph.D. scholarships in floriculture available

Link to Original Article

AFE is now accepting applications for the new Altman Family Scholarship, and the Paul Ecke, Jr. Scholarship, for graduate students who have the skills and passion to become leading floricultural scientists and educators.

The application deadline is Feb. 1.

The Altman Family Scholarship was created in 2015 by Ken and Deena Altman – owners of Altman Plants – who support numerous efforts to improve education and research for the industry.

The Altmans are highly appreciative of the field of horticulture and enjoy giving back. They established the Center for Applied Horticultural Research as an effort to help the industry. Ken Altman has also been actively involved in AFE’s Education and Scholarship Committees for a decade.

“We’re privileged to have Ken on our board. His experience has been undoubtedly beneficial for AFE as we continue to advance the industry, and his commitment to improving educational efforts is commendable,” AFE Chairman-Elect and Education Committee Chairman Dwight Larimer said.

More: Endowment.org

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