John Deere dealer sold
Published 9:04 am Thursday, January 8, 2009
The John Deere implement dealership for Albert Lea and Kiester was sold at the end of December and will become part of a string of dealerships centered in Mankato.
Erlandson’s Inc., which has a store in Albert Lea on Freeborn County Road 46 east of Interstate 35’s Exit 11 and another in Kiester on East State Street, was owned by Kent and Scott Erlandson and by Arlen O’Brien. On Dec. 30, they sold the company for an undisclosed amount to Mankato Implement, owned by Steve and Ron Kibble.
Mankato Implement has dealerships in Mankato, New Ulm, Nicollet and Minnesota Lake. The Erlandson’s name will stay on the stores in Albert Lea and Kiester.
Kent Erlandson said one reason for the sale is his age. He is nearing retirement age but isn’t retiring yet. He also said his son, Scott, wants to stay in the implement business but not be an owner.
Kent said another reason is John Deere is encouraging consolidation. He said farms keep growing, and there are fewer farmers each year, reducing the number of customers. He said consolidating dealerships will bolster the available inventory and therefore serve customers better.
“They see the need to have a better selection of equipment than a two-dealer dealership can supply,” he said.
He said implement dealers are facing the same pressures to consolidate that other businesses have felt.
The sale “is not a big deal, but it is a big deal that the implement business has gone into the future like a lot of other businesses,” he said.
Kent’s wife works at Celebrations Parties & Gifts in Albert Lea. The owner of that business sold it and mentioned she was happy to have a buyer. He said that made him think about the market for the selling of implement dealerships.
“I thought, ‘If we don’t do the transaction in a few years, there might not be anyone who wants to buy it.’”
Scott will be the manager of Erlandson’s Inc. O’Brien will be involved in the management at Kiester. Kent will remain at Erlandson’s, working more in sales and less in management. He said it will reduce his work week from 50 or 60 hours to about 40.
“It takes a lot of stress off of my position,” he said.
There are 25 employees. All will keep their jobs, said Steve Kibble, the majority owner of Mankato Implement.
“We want to make the transition as seamless as possible,” he said.
Kibble said for many years they had worked as territory neighbors in southern Minnesota. He said he purchased Erlandson’s because it has a loyal customer base and a good reputation in the communities it serves. He said the Albert Lea and Kiester stores fit well with the region his company serves from Minnesota Lake.
“It’s some of the best farming ground in the corn belt,” Kibble said.
Steve Kibble’s father, Ron, started Mankato Implement in 1974.
Erlandson’s has been in Albert Lea for 70 years. Oscar and Ralph Erlandson opened its doors Jan. 1, 1939. Oscar is Kent’s grandfather and Ralph is his father. Kent entered the family business in 1973 and Scott began 12 years ago.
Kent Erlandson said customers will notice they can get parts faster. The company sent a letter to its customers on Jan. 1, notifying them of the sale and thanking them for their business. In it, Kent described some changes.
“You will not only continue to get the same good service, but you will get the knowledge, the availability of parts, machinery and technical support of a larger dealership organization which consists of six locations,” he wrote.
He said Erlandson’s will remain involved in the communities, donate to causes and be connected to the lives of its customers, some of whom are third- or fourth-generation customers. And he added he is glad to be working with the same staff.
“We still will be able to give the good service we built our business on because we’re keeping the same people,” Erlandson said.