La Coop federee to acquire Land O'Lakes/CHS j.v.
October 31, 2008
by Eric Schroeder
BELTON, ONT. — La Coop federee, Land O'Lakes, Inc. and CHS Inc. have signed a share purchase agreement under which La Coop federee will acquire the shares of Agronomy Company of Canada Ltd. (A.C.C.), a Land O’Lakes/CHS 50-50 joint venture. Terms of the acquisition, expected to close December 31, 2008, were not disclosed.
Under the terms of the acquisition, which is expected to close Dec. 31, La Coop federee will acquire the shares, corporate office and grain assets of A.C.C.; Wellburn Agromart Ltd., a crop inputs and grain subsidiary of A.C.C. located in Wellburn, Ont.; an ownership position in 20 Agromart retail businesses across four Eastern Canadian Provinces, operated as joint ventures between A.C.C. and independent business partners, with A.C.C. continuing as a joint venture partner; and indirect ownership interests in affiliated companies serving the Agromart businesses, including Agromart Terminals, Inc. and Agromart Processing Company, Inc.
"For some years now, La Coop federee has been pursuing its expansion throughout Canada thanks to acquisitions comparable to the one being announced today," said Claude Lafleur, chief executive officer of La Coop federee, an organization comprised of 95 cooperatives belonging to 76,000 members. "We are convinced that our expertise, when combined with that of our new partners involved in this transaction, will benefit all our clients."
Land O’Lakes and CHS also positioned the transaction as a positive strategic initiative.
"This transaction enables us to further intensify our focus on wholesale crop nutrients and crop protection products," said Chris Policinski, president and c.e.o. of Land O’Lakes, and John Johnson, president and c.e.o. of CHS. "Further, we were pleased to be able to position Agronomy Company of Canada with a buyer that offers considerable experience and expertise within the inputs, seed and crop protection industry. We believe this transaction is a positive strategic move for Land O’Lakes and CHS, La Coop federee and A.C.C."