Yesterday, West Central Ag Services’ membership voted to affirm the merger with CHS.
This comes after weeks of campaigning for the cooperative to consider a resubmitted offer for purchase by The Arthur Companies, which resulted in CHS increasing its original offer by $25 million.
The total votes exceeded 1,100 active patrons, of which more than 70% voted in favor with the CHS merger (two-thirds approval was required to affirm the merger.) The transaction will officially close in the coming weeks.
“The West Central Ag Services board is pleased that our members agreed that CHS is the best fit for our cooperative. Joining CHS connects our farmer-members in northwest Minnesota and eastern North Dakota to the global marketplace efficiently,” says Duane Brendemuhl, West Central Ag Services Board president and chair. “By becoming part of the CHS supply chain, we’re providing strength and long-term value for owners and the cooperative system.”
West Central Ag Services offers grain and agronomy services to more than 3,000 members and has 14 locations in west central Minnesota. CHS says its footprint extends to more than 450 communities across 16 states.
“We are excited to move forward as one cooperative and welcome West Central Ag Services members and employees to CHS. Together, we will directly connect more producers to the global ag supply chain, providing broad market access for all our farmer-owners,” says Rick Dusek, executive vice president of ag retail, distribution and transportation at CHS.
In the days leading up to the vote, members were offered meetings hosted by both West Central and Arthur Companies. Additionally, members posted on social media about receiving multiple calls and text messages from the West Central board encouraging them to vote and vote in support of the merger.
The original vote was scheduled for Nov. 7, however, when official documents were made public about the offer from CHS, The Arthur Companies revealed itself to be another bidder for the West Central Ag business, and they resubmitted their offer for acquisition.
“The Arthur Companies hopes we’ve raised awareness on the full range of options available to maximize growers’ bottom line when cooperatives are considering their future,” says James Burgum, CEO of the Arthur Companies.
Previous Coverage:
Merger Vote Proceeds For West Central Ag and CHS
Co-Op Board Delays Merger Vote, Farmers Will Consider Two Offers
