LINCOLN, Neb. (DTN) -- CHS Inc. closed a multi-million-dollar deal on Thursday, Jan. 2, to acquire West Central Ag Services, based in Ulen, Minnesota. CHS announced in a news release that all employees of the now CHS West Central would continue with the company.
In addition, CHS said in the news release that a 50-50 joint venture called Central Plains Ag Services, based in Hannaford, North Dakota, is now wholly owned by CHS and has become part of the CHS ag retail business unit located in Devils Lake, North Dakota.
The Minneapolis Star Tribune reported in December that the companies agreed to what is a $225 million merger, after other companies made similar offers to West Central as well.
CHS said Thursday that the business unit will remain based in Ulen, and Jesse McCollum, former West Central Ag Services CEO, will serve as senior director of operations. In addition, CHS said West Central's producer board will also remain in place.
"This is an exciting time for our owners and our cooperative as we join CHS and become part of the global supply chain through CHS," McCollum said in a statement.
"We are thrilled to be part of the nation's leading farmer-owned cooperative to serve farmers in west-central Minnesota for generations to come. Joining CHS was the right fit for us. West Central Ag Services and CHS have had a strong relationship for many years based on aligned visions to advance the cooperative system, serve our owners better and create more value for owners. Now we will do that as one cooperative."
West Central's members approved the sale on Nov. 26, 2024.
Inver Grove Heights, Minnesota-based CHS, is the nation's largest farmer-owned cooperative and global agribusiness that serves customers in 65 countries and employs about 10,000 people worldwide. CHS said in a news release that its company recorded about $39 billion in revenue this past fiscal year.
West Central offers grain and agronomy services to more than 3,000 members and has 14 locations in west-central Minnesota.
It was a busy 2024 for CHS on the mergers and acquisitions front.
In April 2024, CHS announced plans to buy eight Cargill grain facilities in five states, including Illinois, Minnesota, Nebraska, Colorado and South Dakota.
Also in April, CHS and Growmark announced talks between the companies concluded without them pursuing new opportunities.
Read more on DTN:
"CHS to Buy 8 Cargill Grain Elevators," https://www.dtnpf.com/…
"CHS, Growmark Collaboration Talks Conclude Without Pursuing Any New Opportunities," https://www.dtnpf.com/…
Todd Neeley can be reached at todd.neeley@dtn.com
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