CHS Inc. has signed an intent to purchase agreement to acquire eight grain assets from Cargill in a strategic move to enhance its supply chain and expand market access for its farmer-owners. The assets are located across five states, including key facilities in Minnesota, Illinois, Nebraska, Colorado, and South Dakota.
The acquisition is aimed at optimizing CHS's enterprise supply chain by integrating these facilities, which are positioned in Pipestone and Maynard, Minnesota; Morris and Seneca, Illinois; Holdrege, Nebraska; Cheyenne Wells and Byers, Colorado; and Parker, South Dakota. This expansion will provide CHS farmer-owners with improved resources for grain handling, offering better connectivity to the global marketplace.
Rick Dusek, executive vice president of ag retail, distribution, and transportation for CHS, emphasized the acquisition's alignment with the cooperative's commitment to supporting its owners' needs both currently and in the future. He highlighted the strategic nature of the purchase in enhancing the efficiency and reach of their supply chain to global markets.
Cargill, in a media statement, expressed confidence in the sale to CHS, citing a strong existing partnership and shared strategic values that make CHS an ideal candidate for this transaction. The sale is expected to close in early June 2024, further solidifying the longstanding cooperative relationship between the two agribusiness giants.
