Denver-based Intrepid Potash announced on Nov. 26 that it has entered into a contract with United Suppliers Inc. to purchase the Eldora, Iowa, company’s dry fertilizer warehouse in St. Joseph, Mo. Intrepid said the purchase of the 20,000 st facility will support its ag market strategy by transitioning some customers in the region from direct rail shipments to warehouse purchasing.
"The St. Joe location is a strategic distribution asset for us," said Kelvin Feist, senior vice president of sales and marketing for Intrepid. “This warehouse allows us to support our customer base in the region from our geographically-advantaged mines and, in addition, it allows us to add warehouse space to support increased production and meet just-in-time fertilizer demand closer to the farm gate."
The transaction is expected close by the end of the year. United Suppliers, a wholesale organization with some 650 owners across North America, said it will also continue to supply fertilizer to its owners from the St. Joseph warehouse.
"United Suppliers is pleased that Intrepid Potash saw a long-term need for the St. Joe dry shed," said Matt Carstens, vice president with United Suppliers. “The sale of this warehouse to Intrepid makes good sense because of Intrepid’s proximity to this market. It allows United Suppliers to move its strategy forward and support our owners accordingly.”
Feist said Intrepid anticipates good support for the St. Joseph asset. "Intrepid is committed to supplying a number of key customers through this recent warehouse purchase,” he said. “We feel like our approach to this asset will further build customer relationships and ultimately grow our volumes in a key geography. We look forward to pursuing further opportunities of this nature where strategically sound.”