Two Saskatchewan cooperatives have announced merger plans. Borderland Co-op, a retail business with grocery, home center, and convenience store/gas bar locations in Rocanville, Moosomin, and Whitewood, has proposed a merger with Hometown Co-op, a retail business offering food, fuel, and agronomy services to members and customers in Kipling, Grenfell, Sintaluta, and Broadview.
“The decision to amalgamate will ensure a strong, vibrant, and innovative co-op exists in our rural communities,” said Rob Hill, President of the Borderland Board. “Both co-ops complement each other very well.”
“I see endless opportunities ahead for this new partnership,” added Lawrence Swanson, President of the Hometown Board. “Stability, opportunities for growth, and efficiencies in all commodities that will make the member experience stronger and more rewarding across all communities we serve.”
The two businesses said a combined organization will be more resilient to increased competition, provide efficiencies in operations that would save C$100,000 per year, and have more resources and talent to innovate. The two companies already have a management agreement that was established in March 2020 following two years of significant restructuring at Hometown. Both are members of Canada’s Co-operative Retailing System, a network of retail co-ops across Western Canada that operate under the Co-op® brand.
Borderland has 218 employees and 7,800 members, while Hometown has 86 employees and 5,200 members. The merged organization will continue under the Borderland Co-op name, with more than 13,000 members and annual combined sales of more than C$110 million. The unified company will serve eight communities from more than 19 locations. The companies said no jobs would be lost as a result of the merger.
“The board has elected to stay with the name Borderland Co-op if the two should merge simply due to brand recognition and cost of renaming,” said Jason Schenn, CEO of Borderland and General Manager of Hometown. The Borderland name has been in use since 1973, and the cost to rebrand all Hometown assets was estimated at only C$38,000, versus C$170,000 to convert all assets to a new name.
Informational meeting and voting are scheduled on June 7 in Broadview for Hometown members, and on June 8 in Moosomin for Borderland members. If the merger is approved with a two-thirds majority, the proposed starting date of the new co-op will be Oct. 10. The combined board would consist of 11 members for the first year and then go to nine following the expiry of the first term.