CARGILL TO ACQUIRE SOUTHERN STATES COOPERATIVE, INC.'S ANIMAL FEED BUSINESS
Aug. 14, 2017
Source: Cargill news release
Minneapolis, Minnesota -- Cargill has reached an agreement to acquire the animal feed business of Richmond, Va.,-based Southern States Cooperative, Inc., a move that will help the company better serve its customers in the eastern United States. The transaction is expected to close within 90 days, subject to customary approvals. Terms of the deal were not disclosed.
This acquisition is an important part of Cargill Feed and Nutrition's growth strategy and its commitment to the U.S. animal feed industry, strengthening its distribution, and go-to-market capabilities in the important Southeast, Mid-Atlantic and Northeast regions of the U.S.
"Customers are at the heart of everything we do, and this agreement will allow us to better meet their needs in this key geography," said Adriano Marcon, vice president and group director, Cargill Animal Nutrition. "I'm especially enthused about this partnership because it is clear that we share common core values, including a positive work environment and a commitment to delivering for our customers."
Under the agreement, Cargill will purchase the assets of Southern States Cooperative's animal feed business, including seven feed mills and an important portfolio of products, brands and customer and supplier relationships. The other segments of Southern States Cooperative's business - retail, farm supply, energy, and agronomy - are not part of this transaction.
"Southern States is excited to partner our feed manufacturing business with Cargill," said Jeff Stroburg, president and CEO of Southern States Cooperative. "It's important to note that while Southern States will no longer be making feed, we are committed as ever to provide feed to our members and customers. We're excited about the opportunities this partnership will bring to all stakeholders as we work together to grow the feed business in our marketplace."
Upon closing this transaction, Cargill will integrate complementary capabilities, expand access to innovation platforms, align nutrition capabilities and incorporate a broad trading and risk management competency.
"Like Cargill, Southern States Cooperative has a rich history, important heritage and strong reputation," said Mark Lueking, U.S. managing director, Cargill Feed and Nutrition. "We are committed to working together to continue to meet the needs of the local business and communities it serves. We will honor that legacy, and further build upon Southern States Cooperative's reputation in the market, commitment to quality, and relationship with longstanding retail and customer networks."
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and 150 years of experience. We have 150,000 employees in 70 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. For more information, visit Cargill.com and our News Center.
About Cargill Animal Nutrition
Cargill's animal nutrition business has more than 20,000 employees at more than 275 facilities in 40 countries. Fueled by our innovation and research, we offer a range of products and services to feed manufacturers, animal producers, and feed retailers around the world, helping put food on the plates of nearly one billion people around the world every day. Cargill's animal nutrition business offers a range of compound feed, premixes, feed additives, supply chain and risk management solutions, software tools and animal nutrition expertise that is unmatched in the industry. For more information about Cargill Animal Nutrition, visit: http://cargill.com/animal-nutrition.
About Southern States Cooperative
Southern States Cooperative is a Richmond, Virginia-based farm supply retailer and service cooperative. As one of the nation's largest agricultural cooperatives, it provides a wide range of farm inputs, including fertilizer, seed, livestock feed, pet food, animal health supplies, and petroleum products, as well as other items for the farm and home. Founded in 1923, the cooperative is owned by more than 200,000 farmer-members, and serves its members and non-member customers through 1,200 retail outlets in 23 states.