Crop Production Services (CPS) and Cargill AgHorizons (U.S.) have reached a binding purchase agreement whereby CPS will acquire 18 Cargill ag-retail locations in Nebraska, South Dakota, Minnesota, Wisconsin, Michigan, and Indiana, according to a July 6 announcement from Agrium Inc., the parent company of CPS.
Agrium said the 18 Cargill locations have annual revenues of more than $150 million. The transaction is subject to customary closing conditions and regulatory clearances, and does not involve Cargill’s Canadian crop input retail business. The transaction is expected to close by the end of the third quarter of 2016.
“This acquisition demonstrates our continued focus on growing our North American Ag-retail business, particularly in the highly desirable U.S. Cornbelt,” said Agrium’s president and CEO Chuck Magro. “This acquisition will allow us to capitalize on synergies related to the introduction of our proprietary products and services, and leveraging our extensive distribution network. We welcome the Cargill Ag-retail employees to the Agrium family and are excited to bring our agronomic expertise and quality products and services to growers in this important agricultural region.”
Magro noted that the locations are in regions where CPS currently has a limited presence. He said the acquisition will allow Agrium to capitalize on synergies and allow it to leverage its existing distribution network.
“Cargill will focus on being the world’s leading merchant of grain and oilseeds,” said Roger Watchorn, group leader of Cargill’s North American agricultural supply chain. “We remain steadfast in our commitment to help farmers succeed by ensuring they remain competitive in the global market and being as efficient as possible in getting products from origins to destinations.”
Cargill is based in Minnetonka, Minn., and is the largest privately held corporation in the U.S. It’s major businesses include trading, purchasing, and distributing grain and other agricultural commodities; livestock and feed production; food ingredients; industrial products and services; and financial services. The company has some149,000 employees in 70 countries.