CHS to acquire business of Commodity Specialists
August 06, 2007
by Eric Schroeder
ST. PAUL, MINN. — CHS and Commodity Specialists Co. (C.S.C.) have entered an agreement under which CHS would acquire the distillers dried grain (D.D.G.) marketing business of C.S.C. D.D.G. is a cereal byproduct of the distillation process. The transaction has been approved by the boards of both companies and is set to take effect in the coming week.
"For the last 20 years, C.S.C. has successfully focused on being the premier independent D.D.G. marketer in the ethanol industry," said Phil Lindau, co-president of C.S.C. "As volume in the ethanol industry continues to expand rapidly over the next five years, we determined our D.D.G. business would benefit from the resources of a larger entity."
Rick Browne, senior vice-president of CHS Grain Marketing, added that in addition to providing sourcing for current C.S.C. customers, the D.D.G. business "also provides an excellent supply complement to CHS grain and by-product customers, both domestically and internationally."
"Putting together C.S.C.’s marketing and industry expertise with our global access and established distribution capabilities will enhance the already high level of service and market execution to both ethanol plant suppliers and D.D.G. customers," Mr. Browne said.
Steve Markham and Sean Broderick, current managers of the D.D.G. business for C.S.C., will continue to direct the activity of this unit as employees of CHS.
C.S.C. is a privately held Minneapolis-based company and one of the largest byproduct feed trading and marketing companies in the United States. The company trades such products as brewer’s grain, protein meals and middle protein products.
CHS is a diversified energy, grains and foods company owned by farmers, ranchers and cooperatives.