The member vote on a proposed merger between ProVision Partners Cooperative, Marshfield, Wisc., and Premier Cooperative, Mt Horeb, Wisc., has been delayed for up to a year, Premier Co-op management told members in February.
The two regional co-ops announced last fall (GM Sept. 21, 2018) that they had signed a letter of intent (LOI) to explore a merger, with both boards voting unanimously to pursue a unification. A merger vote was originally scheduled for early February 2019, with the merger slated to take effect on Oct. 1, 2019, if members voted their approval.
Premier Co-op CEO Andy Fiene, however, told members in the company’s February newsletter that the ProVision board has asked to delay the membership vote while continuing “the discussions and planning process” related to the proposed merger.
“When laying out a timeline of future discussions and actions last summer, the boards of each company anticipated presenting a plan of merger to the ProVision membership as early as this winter,” Fiene said. “During recent discussions, the ProVision board asked to continue the discussions and planning process, but to delay the membership vote by up to a year. The two companies have identified many benefits a partnership can bring to the members of each cooperative. We’ll continue to discuss these and more as we continue exploring this partnership, and I’ll keep you posted on the progress.”
Both co-ops have large agronomy businesses in central and southern Wisconsin, in addition to operating grain, feed, energy, convenience store, and automotive divisions. A memo distributed to members last fall noted “similar cultures and core divisions” between the two businesses, and said the “increased size and scale caused by the merger would make the co-op a preferred partner with major manufacturers.”
ProVision was formed in 2015 with the merger of Harmony Country Cooperative in Colby, Wisc., and Central Wisconsin Cooperative in Stratford, Wisc. The member-owned company has agronomy locations in Auburndale, Stratford, and Unity, and employs about 220 individuals in the communities it serves. ProVision has annual sales of about $110 million.
Premier was formed in 1893 and is recognized as the oldest farm and consumer supply cooperative in the U.S. The company has 19 locations and some 380 staff members, and posted 2018 sales of about $190 million and after-tax earnings of $9.5 million. The co-op in 2018 returned a record $3.7 million in cash to its members in patronage and equity retirements.