Another regional cooperative merger is under consideration in the upper Midwest. The boards of directors of ProVision Partners Cooperative, Marshfield, Wisc., and Premier Cooperative, Mt Horeb, Wisc., announced that they have signed a letter of intent (LOI) to explore a merger.
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 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.”
Premier CEO Andy Fiene also said the combined territory would “create new opportunities for growth and efficiencies, such as allowing us to share expensive, high-tech equipment and some staff during the spring as planting moves north.”
The merger proposal will be presented to co-op members for a vote this winter. If approved, the merger will take place on Oct. 1, 2019. Each co-op would have five directors serving on the new board. ProVision and Premier did not announce what name the combined company would have.
“The potential merger is a sound plan that provides financial security for patrons’ allocated equity, significant long-term savings, efficiencies in current operations, and opportunities to further expand our technology and other services for both our cooperatives’ and patrons’ operations,” said David Brill, ProVision board chairman.
“Both boards voted unanimously to pursue this opportunity,” said Steve Burns, Premier board chairman. “Together, we’ve identified many benefits, and we look forward to working together over the next several months to finalize a plan of merger for the future of our cooperatives, the members, and employee team.”
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 posts annual sales of about $190 million.
“Bigger doesn’t automatically mean better, but if well-run, a larger organization will have advantages and opportunities not available to smaller companies,” Fiene said. “Most importantly, we’ll have the financial performance and balance sheet strength needed to attract and retain talented staff, while investing in the equipment, facilities, and other tools they need to help make our members successful.”