Indiana-based cooperatives Co-Alliance Cooperative Inc. and Ceres Solutions Cooperative Inc. on Nov. 29 announced an agreement to pursue a merger. The decision follows a three-month due diligence period announced in September (GM Sept. 1, p. 1) to investigate the potential synergies of a combined organization.
Upon reviewing the final due diligence report, the Boards of Directors of both cooperatives unanimously approved a member vote for the merger to drive efficiencies, share expertise, and deliver a diverse portfolio of services to customers, the companies announced.
“After considerable analysis, we believe this merger will provide a tremendous opportunity for our 20,000 farmer-owners. This will allow our team to provide more robust service offerings, greater investments in our assets, and an unmatched customer experience,” said Jeff Troike, CEO of Ceres Solutions. “Together we know there will be great synergies from this historic merger with the Co-Alliance team.”
If the membership approves the merger, the new cooperative will have 1,800 full-time employees serving hundreds of rural communities in Indiana, Illinois, Michigan, and Ohio. Membership voting will take place in the coming weeks with the hope of completing the merger in early 2024.
“This merger drives our mission of serving our farmer-owners and the communities where we live and work,” added Kevin Still, CEO of Co-Alliance Cooperative. “The combined strength and legacy of success of Ceres and Co-Alliance creates a powerful partner for our farmer-owners and customers, helping them grow future generations. We are excited about this dynamic combination and what it means for the strength and future of the cooperative system.”
Based in Indianapolis, Co-Alliance is the result of the merger of five cooperatives in 2002, but its roots date back to the 1920s. The company provides agronomy, propane, fuels, grain, seed, hog production, and feed products and services from 79 locations in Indiana, Michigan, and Ohio, with approximately 51 of those dealing with agronomy.
Formed in 2007 as a partnership of local farmer-owned cooperatives, Ceres is based in Crawfordsville and has more than 750 team members in 37 counties across Indiana and Michigan. Ceres operates 65 locations with approximately 41 providing agronomy and/or fertilizer. Ceres added T&T Fertilizer Inc., Goshen, Ind., in 2020 (GM Feb. 7, 2020), and also completed mergers with North Central Co-op, Wabash, Ind., in 2017 (GM Aug. 18, 2017), and Falmouth Co-op in northern Michigan.
Ceres and Co-Alliance are already partners in Endeavor Ag & Energy, a joint venture that provides agronomy, propane, and feed services in north-central Michigan.