Dakota Plains Cooperative and CHS Inc. to study consolidation
ST. PAUL, Minn., Aug. 26, 2013 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP), an energy grains and foods company and the nation's leading farmer-owned cooperative, and Dakota Plains Cooperative, a full-service agribusiness headquartered in Valley City, N.D., announced today the two cooperatives have been in discussions about entering into a merger transaction and now seek approval from the members of Dakota Plains Cooperative and the CHS Board of Directors.
Integral to this effort is close examination of opportunities to enhance agronomy assets in the east central area of North Dakota. Plans under discussion include constructing three new fertilizer plants within the Dakota Plains trade area to take full advantage of the proposed fertilizer manufacturing facility in Spiritwood, N.D., currently under review by CHS.
"Dakota Plains is excited to have the opportunity to partner with CHS. They have worked well with us in the past and we look forward to taking our relationship to the next level," said Greg Svenningson, Dakota Plains Cooperative board president. "This merger will allow Dakota Plains to more fully align and partner our growers with the nation's largest cooperative."
"Both organizations are looking for growth and expansion opportunities at the same time we protect member equity," said John McEnroe, executive vice president, CHS Country Operations. "We are always interested in investments that align with the CHS commitment to helping our farmer-owners grow their businesses."
A series of informational meetings for Dakota Plains patrons are being scheduled for September to bring more information to area growers.
Dakota Plains Cooperative (dakotaplains.coop) offers farmers and ranchers a full line of agronomy, seed, feed and energy services and products from 15 locations in central and southeast North Dakota.
CHS Inc. (chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2012, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE CHS Inc.