WCAS-CHS Merger Approved

Members of West Central Ag Services approved the sale of their cooperative to CHS. More than 1,100 active patrons voted with over 70 percent of them in favor of the merger. In an earlier interview, West Central General Manager Jesse McCollum told RRFN said this combination brings immediate value to its members. “As we analyzed the situation, when can you sell something over five times equity and own it back the next day at zero that brings a lot of value for the business; we think it’s a huge opportunity in setting us up for the future.” The $225 million deal is expected to close within 30 days. West Central Ag Services is based in Ulen, Minnesota, and has 14 locations in northwest Minnesota. CHS and West Central Ag Services have a 50/50 joint venture based in Hannaford, North Dakota called Central Plains Ag Services. This joint venture will now be wholly owned by CHS and part of the CHS ag retail business unit located in Devils Lake. The Arthur Companies made a bid for West Central Ag Services, highlighting its offer in a series of town meetings, online and on the radio. However, the West Central Ag Services board chose to move forward with only the CHS merger proposal.