After reporting in December that they were exploring a possible merger (GM Dec. 11, 2015), the leadership of Trupointe Cooperative Inc. in Piqua, Ohio, and Sunrise Cooperative in Fremont, Ohio, announced that they have decided to recommend the consolidation and put it to a member vote.
“We ask the membership to consider the facts of the proposed merger and think about this decision very seriously,” said George Secor, president and CEO of Sunrise. “As members, they hold a unique opportunity to play an active part in guiding our cooperatives to the future. In addition, they must also consider the potential this merger could bring to their individual operations.”
Informational meetings with the leadership of both co-ops were concluded in early February after joint articles and bylaws were drafted in January, with both boards recommending that the merger move to a member vote. The two cooperatives said both business are “financially sound separately and could continue to successfully operate so,” but touted several benefits from the proposed merger.
These benefits include stronger profits and timely equity redemption to members; size and scale that would allow better access to key partnerships and product supply chains; a larger geographic footprint to position the combined co-op to offset market risks, instability, and weather patterns; increased opportunity for facility and asset investments at a faster pace; and great opportunities to invest in important agricultural innovations.
“On behalf of the leadership and board of directors, I ask for your support of this merger,” Trupointe President and CEO Larry Hammond told members. “This opportunity is not only about ensuring our position in the marketplace for the future, but increasing the service and value you receive today as a member.”
Ballots have been mailed to voting members and must be returned by March 7 at 10:00 a.m. As a combined entity, the new cooperative would begin operations on Sept. 1, 2016, under the leadership of Secor as president and CEO. If the merger is approved by members, the new board will select the name of the entity as well as the corporate office location.
Sunrise is a full-service co-op serving 3,200 member-owners in a 12-county area of north-central Ohio. The company has 192 employees and total annual sales of $525 million, and operates grain, agronomy, feed, and energy divisions from approximately 10 Ohio locations. Sunrise’s four agronomy facilities are located at Attica, Ballville, Crestline, and Norwalk, and its five grain facilities have total storage capacity of more than 27 million bushels.
Trupointe is a member-owned agricultural and energy co-op serving approximately 4,100 members in west-central Ohio and northeastern Indiana. The company operates agronomy, grain, feed, fuel, propane, turf, and retail store divisions from some 27 locations. Trupointe was formed in 2010 (GM Feb. 15, 2010) from the merger of Southwest Landmark Inc. and Advanced Agri-Solutions Inc., operating initially from 45 locations in Ohio and Indiana with a full- and part-time workforce of 510.
Trupointe hopes to complete a $30 million construction product this year at its Milford, Ind., TruHorizons facility. The project was launched in 2013 (GM Jan. 18, 2013), with the first phase becoming operational in 2014 as a full-service agronomy hub offering dry and liquid fertilizer, crop protection products, seed and traits, crop scouting, and precision ag and application services. The second phase includes a 4.3-million-bushel grain elevator.