Posts By Date - Green Markets

Illinois co-ops merge to form Prairieland FS

Shareholders of Lincoln Land FS Inc. in Jacksonville, Ill., and Two Rivers FS Inc. in Rushville, Ill., have approved a merger of the two companies, effective Dec. 1. The new full-service cooperative will operate under the name of Prairieland FS Inc., and will be headquartered in Jacksonville.

The combined footprint of Lincoln Land FS and Two Rivers FS extends Prairieland’s service area from west-central Illinois into northeastern Missouri. The new company will provide agronomy, energy, facility planning, grain marketing, and logistics products and services to customers in Adams, Brown, Menard, Morgan, Pike, Sangamon, Schuyler, Scott, and southwestern Fulton counties in Illinois, and also in four Missouri counties.

Keith Hufendick, former manager of Two Rivers FS, has been named CEO of the new company, while Matt Busby, former manager of Lincoln Land FS, will serve as chief operating officer. Other key management positions include Joe Pickrell, who will serve as president, and Chet Esther, who assumes the role of vice president.

Lincoln Land FS’s service area in west-central Illinois includes facilities at Jacksonville, Atterberry, Auburn, Bethel, Franklin, Greenview, Illiopolis, New Berlin, Prentice, Riverton, and Winchester. Two Rivers FS operates facilities in Kahoka and Taylor, Mo., and also at 14 Illinois locations in Rushville, Astoria, Camden, Golden, Ipava, Kinderhook, Kingston, Milton, Mt. Sterling, Paloma, Payson, Pittsfield, Pleasant Hill, and Ursa.

The FS co-ops are affiliates of Growmark, a regional cooperative based in Bloomington, Ill., with annual sales of $10.1 billion. Two Rivers FS and Lincoln Land FS together posted $300 million in sales for the most recent fiscal year ended July 31, 2013.

Chemtrade acquires General Chemical Holding Company

December 4, 2013Breaking Industry Newswebster@kennedyinfo.com

Toronto-based Chemtrade Logistics Income Fund announced on Dec. 4 that it has entered into a definitive agreement to purchase General Chemical Holding Company, Parsippany, N.J., for $860 million, subject to certain adjustments.

General Chemical is a manufacturer of a broad portfolio of inorganic chemical products with three business units: Water Treatment Chemicals, Sulfuric Acid, and Specialty Chemicals. The company is one of North America’s largest suppliers of sulfuric acid, liquid sulfur dioxide, and sodium hydrosulfite, and is a major regional supplier of sulfur, sodium chlorate, phosphorus pentasulfide, zinc oxide, and water treatment chemicals. The business operates 45 facilities across the U.S. and Canada, and employs approximately 540 people.

The transaction will be structured as a merger in accordance with the laws of the State of Delaware, pursuant to which Chemtrade will acquire all of the outstanding shares of ASP GT Holding Corp., General Chemical’s parent company, from certain funds controlled by American Securities LLC, a private equity firm.

“This is a historic event for Chemtrade. The acquisition of General Chemical adds significant size, scale, and scope to Chemtrade’s existing product and service platform,” said Mark Davis, Chemtrade president and CEO. “General Chemical has strong portfolio alignment with our current business, enhancing our existing sulfuric acid geographic footprint and greatly expanding our water treatment business so it now extends across most of North America. The acquisition of General Chemical also moves Chemtrade into new but related product categories and end markets, and positions Chemtrade to capitalize on new growth opportunities.”

General Chemical’s customer based includes municipal water treatment, general industrial production, pulp and paper, food and beverage, agriculture, and pharmaceuticals. The company posted revenues of $390 million for the fiscal year ended Sept. 30, 2013, and adjusted EBITDA of $110 million.