United-PMA merger talks apparently abandoned
United-PMA merger talks apparently abandoned
Discussions to merge the Produce Marketing Association and the United Fresh Produce Association have apparently been called off.
Mike O'Brien, co-chairman of the joint task force leading Produce Marketing Association's and United Fresh Produce Association's merger discussions, said in a statement released July 17, "I acknowledge with profound disappointment that despite our best efforts we were unable to agree on an acceptable joint association model that would meet both member and industry needs. Let me state for the record that this was a decision made by PMA's volunteer leaders on behalf of our members. PMA remains committed to building collaborative relationships with all our association partners in the U.S. and abroad."
On July 10, The Produce News reported that the United Fresh board of directors sent a memo to the PMA board of directors that included a resolution passed by the United Fresh board "that the UFPA board will approve the merger with the Produce Marketing Association subject to all of the terms recommended by the PMA-UFPA Joint Task Force as reflected in the merger agreement and its attachments, contingent upon the board of directors of the new combined association selecting the CEO."
However, the selection of the chief executive officer by the new board of directors was in contrast to a resolution passed June 29 by the PMA board, which called for its current CEO to become the CEO of the new association as a precondition of PMA's approval of the merger.
The United resolution requested that PMA respond by July 17 "so we can update the UFPA board on PMA's decision and, we hope, move forward with final approval by both boards and both memberships on the merger."
"We engaged leading experts in association mergers to ensure that we took every step possible to advance the interests of our members across the global supply chain while reducing duplication and costs," Mr. O'Brien said in his July 17 statement. "Those experts guided us through a disciplined legal due diligence process and comprehensive financial modeling to assess both the opportunities and challenges of a merger. Let me assure you that our duty to represent our members' best interests was first and foremost in our minds at every stage of this process."
Following the release of Mr. O'Brien's statement, United Fresh Chairman David Krause and Chairman-elect Ron Midyett released a statement on behalf of their association, saying, "We are disappointed that in the end, PMA's current leadership did not agree with what we believe was a very fair, member-oriented plan that could have blended the goals and priorities of both associations. Without that commitment from our friends at PMA, the United board could simply not abandon the principles that have guided our association for more than a century. We anticipate that both associations will now continue to pursue their own strategic vision, offering a clear contrast in value and program choices to the industry, while collaborating when in the best interests of their members."