There’s another vote this week getting attention in farm country across Minnesota.
As announced in May, CHS and West Central Ag Services have signed a nonbinding letter of intent for acquisition. The farmer member vote is Thursday, Nov. 6.
“We believe strongly in the value of the cooperative system and think CHS is a great home for West Central Ag Services. CHS is a farmer-owned cooperative that connects farmers to a global supply chain while providing patronage back to owners,” says Rick Dusek, EVP, ag retail, distribution and transportation at CHS.
However, on Nov. 4, The Arthur Companies disclosed they had put in an unsolicited bid for West Central acquisition in April. When the details of the merger with CHS were revealed in the voting paperwork received by farmers, Arthur Companies’ CEO James Burgum launched an unprecedented outreach effort.
“We know, after reviewing the proposal, that our alternative proposal is a stronger proposal for growers’ bottom line,” he says. “We wanted them to make sure as they go in to vote this Thursday and make a decision about the future of their cooperative, they have all the information and all the facts about The Arthur Company’s proposal about who we are and why we’re excited and interested to put ourselves in front of the patrons as an alternative path.”
Three things make this unique in the ag retail business:
- This represents a family-owned business looking to acquire a cooperative
- Typically, when a company does not get chosen as the winning bid, they don’t reveal themselves
- Not only is Arthur Companies making it known they sought to acquire West Central, they are actively asking farmers to reconsider a resubmitted indication of interest
As detailed on ArthurAdvantage.com, the company outlines what is different about the proposals and posts the letter Burgum sent to West Central farmer members, which includes his contact information for direct outreach, and he says there has been a lot of inbound calls.
“This is important that they know there are still alternatives for them as they think about the future of their cooperative,” he says.
West Central Ag Services was founded in 2000, is headquartered in Ulen, Minnesota and has 14 locations.
