CHS and West Central Ag Services, a cooperative based in Ulen, Minnesota, have signed a nonbinding letter of intent for West Central Ag Services to join CHS. The move aims to enhance service to owners and customers and position the cooperative system for future growth.
“Our two cooperatives are aligned in our vision to advance the cooperative system and best serve our owners by connecting our producers to the global marketplace,” said Duane Brendemuhl, West Central Ag Services Board president and chair. “This proposed transaction provides an opportunity to bring more value to our farmer owners and compete more effectively with other local ag companies, while positioning us for the future success of a combined cooperative through efficient, globally connected supply chains.”
The proposed transaction aligns with CHS's strategic investments to grow the global agricultural supply chain, providing end-to-end value and enhanced market access for the cooperative system.
“CHS and West Central Ag Services have a longstanding, strong relationship based on mutual trust and respect, as evidenced by our joint venture Central Plains Ag Services,” said Rick Dusek, executive vice president of ag retail, distribution and transportation at CHS. “Better connecting the global agriculture supply chain and investing in the speed and space of our assets provides better market access and creates more value for farmer owners.”
CHS and West Central Ag Services will now begin due diligence on the proposed transaction, which is subject to necessary approvals.
