Ceres Solutions, Co-Alliance to Purchase Assets of CHS-Owned Ag Retail Business in Michigan
June 15, 2020 Indiana-based agricultural cooperatives Ceres Solutions and Co-Alliance have announced they will form a joint venture to pursue the purchasing assets of a CHS-owned agricultural retail business in Michigan.
“We’re pleased to partner with Co-Alliance with the goal of expanding our mutual retail operations to serve farmers throughout central Michigan with agricultural products and services,” said Jeff Troike, CEO of Ceres Solutions.
“This strategic joint venture with Ceres Solutions combined with the potential purchase of extensive retail assets will add capabilities and scale to extend reach and drive growth for both cooperatives and our respective owners,” added Kevin Still, CEO of Co-Alliance.
“Consistent with the CHS purpose of creating connections to empower agriculture, the proposed transaction would expand the operations of these two leading cooperatives, ensure farmers have continued access to cooperative products and services, and allow CHS to reinvest in retail operations more closely aligned with its core business supply chain,” said Rick Dusek, CHS executive vice president. Dusek said the parties would also negotiate a wholesale supply agreement.
Troike and Still said the joint venture and subsequent potential acquisition of assets and capabilities demonstrate the continued importance of the cooperative model serving local farmers.
The parties said negotiations will continue with due diligence activities in the coming days and weeks and that they hope to obtain necessary board approvals and complete the transaction later this year.
Subscribe Today For
