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CHS and West Central Ag Services sign nonbinding letter of intent

CHS and West Central Ag Services cooperatives have signed a nonbinding letter of intent for West Central Ag Services to join CHS.
May 15, 2024

CHS and West Central Ag Services, a cooperative based in Ulen, Minnesota, have signed a nonbinding letter of intent for West Central Ag Services to join CHS to better serve owners and customers and position the cooperative system for future growth.

“Our two cooperatives are aligned in our vision to advance the cooperative system and best serve our owners by connecting our producers to the global marketplace,” says Duane Brendemuhl, West Central Ag Services Board president and chair. “This proposed transaction provides an opportunity to bring more value to our farmer-owners and compete more effectively with other local ag companies, while positioning us for the future success of a combined cooperative through efficient, globally connected supply chains.”

The proposed transaction with West Central Ag Services aligns with strategic investments for CHS to grow the global agricultural supply chain while providing end-to-end value and enhanced market access for the cooperative system.

“CHS and West Central Ag Services have a longstanding, strong relationship based on mutual trust and respect, as evidenced by our joint venture Central Plains Ag Services,” says Rick Dusek, executive vice president of ag retail, distribution and transportation at CHS. “Better connecting the global agriculture supply chain and investing in the speed and space of our assets provides better market access and creates more value for farmer-owners,” says Dusek.

CHS and West Central Ag Services will now begin due diligence on the proposed transaction, which is subject to necessary approvals.

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