On January 2, CHS closed its acquisition of West Central Ag Services. Officially, the former West Central Ag Services is new ag retail business unit called CHS West Central now part of the CHS supply chain.
CHS announced Jesse McCollum, former West Central Ag Services CEO, will serve as senior director of operations.
“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 says. “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.”
Additionally, CHS and West Central Ag Services had a 50/50 joint venture in Central Plains Ag Services, based in Hannaford, N.D., which is now wholly owned by CHS and is part of the CHS ag retail business unit located in Devils Lake, N.D.
In late November, West Central Ag Services’ membership voted to affirm the merger with CHS. The total votes exceeded 1,100 active patrons, of which more than 70% voted in favor with the CHS merger (two-thirds approval was required to affirm the merger.)
The vote came after weeks of campaigning for the cooperative to consider a resubmitted offer for purchase by The Arthur Companies, which resulted in CHS increasing its original offer by $25 million.
West Central Ag Services’ previous footprint included grain and agronomy services to more than 3,000 members and 14 locations in west central Minnesota. CHS says its footprint extends to more than 450 communities across 16 states.
Previous Coverage:
