The Minnesota Star Tribune's Brooks Johnson reported on the board of West Central Ag Services has endorsing CHS's $225 million acquisition offer. This decision comes after careful consideration of a competing $250 million bid from North Dakota-based The Arthur Companies Inc.
CHS initially offered $200 million in May but increased its bid to $225 million following Arthur's competing offer. The decision now rests with West Central Ag Services members, who will vote on the board-backed CHS acquisition on November 26.
West Central Ag Services, operating primarily in the Red River Valley, reported $767 million in revenue and a $41 million profit last year. The cooperative's long-standing relationship with CHS as a member, customer and joint venture partner played a significant role in the board's decision.
As the vote approaches, representatives from CHS, West Central Ag Services, and Arthur will meet with members to discuss the proposals. Rick Dusek, CHS executive vice president, highlighted the benefits of joining CHS, including efficient access to global markets and active participation in the cooperative system.
