By TIM THORNBERRY
Kentucky Correspondent

FRANKFORT, Ky. — Families businesses are generally though of as small, and that is the way Griffin Industries (GI) began. A small company in northern Kentucky that picked up dead farm stock, founder John L. Griffin probably had no idea the business he started in 1943 would grow into one of the largest animal byproducts and bakery byproduct recycling companies in the country.
But it did – and it did because Griffin had incredible vision when it came to the business and because he never lost sight of the family aspect, even with other employees. He and his wife, Rosellen, began what was originally called the Falmouth Fertilizer Co. in Pendleton County and, through great foresight and key acquisitions – and the help of a large family (the couple had 12 children) and dedicated employees – the business grew regionally.

The company, headquartered in Cold Springs, Ky., has turned into a multimillion-dollar agribusiness. It is comprised of 57 locations in 20 states, stretching from Pennsylvania to Texas, and has developed a diverse range of products over the years. The idea was simple: Turn recycled materials into other products. But the timing was way ahead of the rest of the recycling world and today, Griffin products include pet food and animal feed, as well as goods for chemical, petroleum, leather and fertilizer industries.

The company’s strength and diversity did not go unnoticed in the business world and by the end of 2010, Griffin announced a merger with another leader in the byproducts recycling industry. Darling International, located in Irving, Texas, initiated the acquisition, worth somewhere in the neighborhood of $840 million in cash and stocks, according to published reports.

Randall C. Stuewe, chair and CEO of Darling, said in a statement, “We are pleased to have the opportunity to add Griffin Industries to our company. Together, we will be stronger, more efficient and, most importantly, have the ability to better serve our customers and suppliers. Our national platform will provide new opportunities for growth. This is truly a win for our shareholders and employees.”

The move creates the largest rendering, bakery byproducts, used cooking oil and grease-trap maintenance provider in the United States, according to Griffin’s director of legal affairs Christopher Griffin, who is a grandson to John L. Griffin. “The combined organization will operate 136 facilities in 42 states and will employ approximately 3,200 people,” he said. “The most exciting thing about this merger, it provides both companies the opportunity for continued employment growth while providing the combined organization with a national footprint to better service our valued customer base.”

Griffin noted there are five key components to the GI business model: the recycling of animal byproducts, including red meat and poultry; collection and processing of spent cooking oil from restaurants and commercial foods operations; the collection and processing of bakery waste material; a biodiesel division using yellow grease as a feed stock; and a fertilizer division that includes organic and inorganic fertilizers from recycled animal proteins.

He also said it was his grandfather’s desire to provide customers prompt service and treat his employees like family that created such a strong company, and this merger will create advantages for both companies. “The merger is and will be a gradual process. There is no disruption to customer service and quite honestly, I think the employees also share in the advantage to not only share in more responsibility but greater potential for career growth,” he said.
It was the employees at the center of attention for the family as they moved through the merger process. Griffin said the company has many long-term employees that have sacrificed much for the family and company over the years, and he credits them with keeping it profitable in a slow economy. “One thing the family realized in going through the merger, is how much the employees cared about the family and that meant a lot to us because we have always treated and tried to treat everybody like family that worked with us,” he said.

“We learned a lot about our employee base. We always knew they were loyal, but it was such a gratifying experience to get the heartfelt phone calls from people when they heard about the merger, to express their gratitude and concern in making sure that certain Griffin family members are still going to stay on.”

Griffin added one of the attractive things about Darling is that GI can and will continue to operate as a wholly-owned subsidiary and the Griffin family will continue on in all the leadership roles and allow their highly experienced management team, which includes some non-family members, to continue in their roles. “We would not have done a deal that did not take care of the employees in making sure their jobs were protected and the careers they have built with the company were going to stay intact,” he said. “The deal didn’t just have to be right with the Griffin family; it had to be right for the employees and their continued employment and continued growth.”

Griffin went on to say the benefit of shared knowledge and experience will be a key factor in moving the company forward.

“When you look at the synergies between Darling International and Griffin Industries, I think that you will see a wealth of information and experience that we are going to be able to share and build on and open new markets, as well as improve on the traditional business models that have been in place, to make both companies successful,” he said.

“So, I think, not only will the combined company benefit, I think that our customers will see a huge benefit. From a service standpoint it will be business as usual. But we will have a more diversified supply of raw material collection services.”