Members of the Ohio cooperatives Southwest Landmark Inc. and Advanced Agri-Solutions Inc. have voted to merge the two organizations. The new cooperative, Trupointe Inc., will begin operations on Sept. 1, 2010, and will serve more than 4,400 farmer members through approximately 45 locations in 26 Ohio counties and three Indiana counties. The new organization will employ a full- and part-time workforce of 510.
“The two cooperatives are extremely complementary,” said Larry Hammond, CEO of Advanced Agri-Solutions and upcoming CEO of Trupointe. “We are looking forward to a smooth transition and are pleased our members agreed that together our cooperatives’ combined assets will result in a stronger co-op for our members.”
Ballots were mailed to members on Jan. 14 (GM Jan. 25, p. 1) after the boards of directors of both co-ops voted unanimously to approve the merger. The results of the member vote were announced on Feb. 8. The consolidation passed with 77.1 percent of the 1,294 ballots cast by Advanced Agri-Solutions members and 82 percent of the 632 ballots cast by Southwest Landmark members. Sixty percent was needed for the merger to proceed.
“The service territories are adjacent, so it is unlikely any branch locations would need to be closed due to the consolidation,” said Gordon Wallace, CEO of Southwest Landmark and upcoming Chief Operating Officer of Trupointe. “It was important as we began this process that we preserve jobs for our more than 500 full- and part-time employees, who on average have been with us for 20 to 25 years, as long as they want to be part of our future.”
Southwest Landmark brings its expertise in agronomy and energy to the merger, while Advanced Agri-Solutions contributes an emphasis on grain marketing and feed. The new co-op will also sell petroleum and turf products.
Members also approved a new board of directors that will be made up of five board members from each existing co-op board, and will be selected by the boards themselves. “The consolidation means more resources and expertise for our members, more grain delivery destinations, more buying power and more market share,” said Southwest Landmark Board President John Waymire. “This is a win for our farmers’ future.”
Before the merger is completed, the co-ops said they would establish internal working groups to study operational efficiencies and blend corporate cultures. Another task will be the development of a consistent Trupointe brand identity.
“We have a lot of work to do in the next few months, but I’m confident the employees and management of both organizations will make this process as seamless as possible,” said Chris Shroer, Advanced Agri-Solutions board president. “We are excited about the possibilities ahead of us.”
Southwest Landmark saw total sales of more than $217 million for the fiscal year ending July 31, 2009, while Advanced Agri-Solutions posted total sales of $279 million for the fiscal year ending Aug. 31, 2009. Southwest sold nearly 57,000 tons of dry fertilizer in 2008, along with more than 48,000 tons of liquid fertilizer and 8,774 tons of anhydrous ammonia. Ag Chemical sales for 2008 totaled $13.35 million, with turf chemical sales totaling $1.26 million.