LINCOLN, Neb. (DTN) -- CHS Inc.'s purchase of West Central Ag Services will be closing in the coming weeks after over 70% of West Central members approved the sale of their cooperative based in Ulen, Minnesota.

West Central's members approved the sale on Nov. 26, 2024, according to a letter to membership from the cooperative's chairman, Duane Brendemuhl.

"While this process has been long, it is in many ways exciting to enter our next chapter," Brendemuhl said in the letter. "Your board and leadership team began discussions about West Central's future more than 18 months ago and concluded that merging into CHS, which shares our vision, our values and our member-owned cooperative structure, was the right next step for today's members and for those who will follow us. This combination will deliver immediate value to you as owners through redemption of your earned equity in West Central."

He said the move will deliver "long-term value by making us a part of a successful cooperative organization with efficient connections to global markets, fertilizer and crop protection manufacturers, and to the end user, as a value-added processor, for the crops you grow."

Inver Grove Heights, Minnesota-based CHS Inc., is the nation's largest farmer-owned cooperative and global agribusiness that serves customers in 65 countries and employs about 10,000 people worldwide. CHS said in a news release that its company recorded about $39 billion in revenue this past fiscal year.

West Central Ag Services offers grain and agronomy services to more than 3,000 members and has 14 locations in west-central Minnesota.

"We are excited to move forward as one cooperative and welcome West Central Ag Services members and employees to CHS," Rick Dusek, executive vice president of ag retail, distribution and transportation at CHS, said in a news release.

"Together, we will directly connect more producers to the global ag supply chain, providing broad market access for all our farmer owners."

West Central Ag Services will join CHS as an ag retail business unit called CHS West Central, operating as part of the CHS global grain and agronomy supply chains, according to the news release from CHS. The CHS ag retail network serves about 450 communities in 16 states. West Central was founded in 2000.

"The merger will close in the coming weeks," Brendemuhl said in the letter to West Central members.

"We will be sharing this timetable with you as we move forward. We will also provide additional information on how distribution of your earned equity in West Central will take place."

Brendemuhl said both employees and the leadership team at West Central will remain in place.

"You will remain cooperative members through CHS," he said. "Your voice will be represented through a local board. Most of all, we are confident that you will benefit from being part of a cooperative system that is farmer-focused and globally connected."

It has been a busy year for CHS on the mergers and acquisitions front.

In April 2024, CHS announced plans to buy eight Cargill grain facilities in five states, including Illinois, Minnesota, Nebraska, Colorado and South Dakota.

Also in April, CHS and Growmark announced that talks between the companies concluded without them pursuing new opportunities.

Read more on DTN:

"CHS to Buy 8 Cargill Grain Elevators," https://www.dtnpf.com/…

"CHS, Growmark Collaboration Talks Conclude Without Pursuing Any New Opportunities," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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