Cargill to buy out an­i­mal-feed busi­ness

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — Nathan Owens

Cargill Inc. is pre­pared to buy South­ern States Co­op­er­a­tive Inc.’s an­i­mal-feed busi­ness, which would ex­pand the Min­nesota food gi­ant’s foot­print through­out the east­ern half of the U.S.

The trans­ac­tion is es­ti­mated to close within 90 days. Terms of the deal were not dis­closed.

South­ern States Co­op­er­a­tive an­nounced late Thurs­day that Cargill would ac­quire seven feed mills and a port­fo­lio of prod­ucts, brands and cus­tomer and sup­plier re­la­tion­ships, once the deal was fi­nal. The re­tail, farm sup­ply, en­ergy and agron­omy seg­ments of the Rich­mond, Va.-based com­pany are not part of this trans­ac­tion.

This ac­qui­si­tion will strengthen Cargill’s distri­bu­tion and mar­ket ca­pa­bil­i­ties in the mid-At­lantic, north­east and south­east re­gions of the U.S., ac­cord­ing to a com­pany state­ment.

“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 Adri­ana Mar­con, vice pres­i­dent and group direc­tor of Cargill An­i­mal Nutrition, in a re­lease.

This comes af­ter a sim­i­lar agree­ment be­tween South­ern States and Land O’Lakes fell through. They reached an agree­ment in Novem­ber, but Land O’Lakes an­nounced in March it would build an an­i­mal feed fa­cil­ity in Roanoke, Va., in­stead.

While South­ern States won’t be mak­ing feed any­more, the com­pany said it is still com­mit­ted to pro­vid­ing feed to co-op mem­bers and cus­tomers. South­ern States is one of the na­tion’s largest agri­cul­ture cooperatives and owned by more than 200,000 farmer-mem­bers. There are 1,200 re­tail out­lets in 23 states.

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