Members of Waterloo-Oxford Cooperative Inc. in Woodstock, Ont., voted March 23 to sell substantially all of the co-op’s assets to Growmark Inc. The vote was held at the co-op’s annual general meeting in Woodstock, and was well attended by more than 70 members who voted 95 percent in favor of the deal.
The transaction, which was approved by the board of directors prior to the meeting, is expected to be completed May 1, 2009. Waterloo-Oxford offers a full line of crop production products, including pesticides, seed, and both liquid and dry fertilizers, with total annual sales of approximately $250 million. The co-op’s sales area in Ontario stretches from Lake Erie to Georgian Bay, and from London to the Highway 400 route linking Toronto to the central and northern sections of the province.
“Growmark’s investment in acquiring the assets of Waterloo-Oxford Co-op is a blessing in terms of what we needed in strong financial support,” said Murray Schnarr, president of Waterloo-Oxford Co-op. “It gives us new stability and allows us to continue to do business for the customers in our trade territories.”
Waterloo-Oxford has operated under the FS Partners name since November 2006, and will continue to operate under that banner after the acquisition. FS Partners is a retail division of Growmark that manages the day-to-day businesses of 20 FS branches throughout central, western, and northern Ontario.
“For our customers, it means they will be able to continue to do business with their local FS Partners branch as usual and see very little change in their day-to-day business dealings,” said Jaye Atkins, FS Partners general manager. “This acquisition will allow us to stay competitive in the marketplace, tap into more resources, and increase efficiencies.”
After the completion of the transaction, Waterloo-Oxford Cooperative will be dissolved. At that time, it is anticipated that current members of Waterloo-Oxford who meet membership criteria will be eligible for membership in Growmark.
Atkins told Green Markets that Waterloo-Oxford has approximately 230 full-time employees and 100 part-time and seasonal staff. He added that the transaction will have “very little impact on employees, with minimal displacement.”
Growmark is a regional cooperative that provides agriculture-related products and services to farmers and rural residents in Ontario and the U.S. through subsidiaries and local FS member cooperatives. FS branded and related products and services include crop inputs, crop protection, seed, grain marketing, energy products, feed, and animal health, as well as a variety of consumer-related products. Growmark reported $6.7 billion in sales for 2008.