According to a statement from the companies, this strategic initiative will explore opportunities for strengthening the cooperatives’ alliance and most importantly enhance the benefits offered to their farmer members.
The due diligence process will involve a thorough examination of each cooperative's financial, operational and organizational aspects. By conducting this analysis, both cooperatives seek to gain a deeper understanding of their respective strengths, synergies, and areas for improvement, with the ultimate goal of creating a resilient and effective alliance, they said.
This due diligence process comes after years of analyzing opportunities together and their joint venture, Endeavor Ag & Energy, which was formed three years ago and serves central Michigan in the areas of agronomy, propane and feed.
Tim Burke, chairman of Co-Alliance’s board of directors, said the due diligence process represents a significant step toward a more prosperous future for its members.
"By assessing our capabilities and identifying synergies, we are poised to unlock new opportunities and enhance the services and support each cooperative currently provides to our respective members," said Burke.
Rick Brubaker, chairman of Ceres Solutions' board of directors, believes the collaborative effort will lead to mutual benefits for both cooperatives and their members.
"We are excited about the potential for growth and innovation that can emerge from this process," Brubaker said.
Due diligence is expected to take three months to complete, during which both cooperatives will work closely with their respective leadership teams and external experts to conduct a thorough evaluation.
Once the process is finalized, the cooperatives will consider the findings and explore various strategic options. Those options may include expanded services, improved operational efficiencies and increased member benefits.