United Cooperative To Pursue Another Merger
United Cooperative plans to merge with Cooperative Services, Denmark, WI, marking the third such partnership by the Beaver Dam, WI, co-op in the past three months.
January 23, 2012
The United Cooperative Board of Directors, Beaver Dam, WI, has signed a letter of intent to allow a wholly-owned subsidiary of United Cooperative to pursue a merger with Cooperative Services, Denmark, WI.
“The world population will grow significantly in the next 30 years. As a result, the agriculture industry now puts a great deal of effort into improving efficiencies and sustainability so this generation and future generations can continue to produce food and fuel efficiently,” noted David Cramer, United Cooperative president and CEO. “Cooperative Services sees this and wants to partner with United Cooperative so, together, we can provide their patron members with the equipment, products, and service needed to maximize production and survive generation after generation.”
Throughout the following months, there will be a series of meetings with Cooperative Services’ employees and patron members about the proposed merger. Ballots will be mailed to Cooperative Services’ voting patron members in February. If approved, the merger will take effect April 1, 2012.
Cooperative Services is projecting revenues for the fiscal year ending Jan. 31, 2012, to be in excess of $29 million. “All of Cooperative Services divisions can be found at one location in Denmark: feed, grain, agronomy, a Cenex convenience store, and an automotive shop,” added Cramer.
Formed in 1936, United Cooperative is a full-service cooperative with feed, grain, agronomy, fuel, lubricant, and propane locations throughout Wisconsin. They documented $525 million in sales in 2011, up $200 million from 2010 due to strong internal growth, and employ about 500 full-time, part-time, and seasonal Wisconsin citizens. United Cooperative is also in the process of merging with Shawano-based Mid-County Cooperative and Pulaski Chase Cooperative, Pulaski; these two mergers will be final Feb. 1, 2012.
United Cooperative locations can be found in Baraboo, Beaver Dam, Deerfield, Hartford, Horicon, Hustisford, Iron Ridge, Johnson Creek, Mayville, Pickett, Poynette, Prairie du Sac, Reedsburg, Ripon, Rock Springs, Sauk City, South Beaver Dam, Watertown, and Wyocena. Starting Feb. 1, 2012, Bonduel, Gresham, Pulaski, and Shawano will be added to this list.