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Minnesota co-op members approve $250m merger with CHS

West Central Ag Services will join CHS as an agricultural retail business unit called CHS West Central

Members of Minnesota co-op West Central Ag Services have approved the sale of their co-operative to global agribusiness CHS, the largest farmer-owned business in the United States.

In a vote last month, 70% of members voted in favour of merging with CHS, exceeding the two-thirds approval required. Turnout was 1100, a West Central record for member participation.

West Central will join CHS as an agricultural retail business unit called CHS West Central, which will be based in Ulen, Minnesota, and operate as part of the CHS global grain and agronomy supply chains. 

CHS, whose agricultural retail network currently serves around 450 communities in 16 US states, says the purchase aligns with strategic investments for the co-op to grow its global agricultural supply chain and provide end-to-end value and enhanced market access for the co-operative system and its owners.

West Central offers grain and agronomy services to more than 3,000 members and has 14 locations in west central Minnesota. Discussions about a potential merger began at the co-op around 18 months ago. 

Related: Agri giant CHS keeps top place on list of USA’s biggest co-ops

CHS first announced a US$200m bid to acquire West Central in May, which was delayed by a competing $250 million offer from privately owned Arthur Cos, prompting CHS to increase its offer to $225m.

West Central chair Duane Brendemuhl thanked members for their participation in the decision, saying that the move will “deliver long-term value by making us a part of a successful co-operative organisation with efficient connections to global markets, fertiliser and crop protection manufacturers, and to the end user, as a value-added processor, for the crops you grow.”

Brendemuhl added that members will remain members through CHS, and the West Central employees and leadership team will remain in place.

Rick Dusek, executive vice president of ag retail, distribution and transportation at CHS, said: “We are excited to move forward as one co-operative 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.”