MONTREAL, Oct. 31 /CNW Telbec/ - ... La Coop fédérée, Land O'Lakes, Inc.
and CHS Inc. today announced the signing of a share purchase agreement under
which La Coop fédérée will acquire the shares of Agronomy Company of Canada
Ltd. (ACC), a Land O'Lakes/CHS 50-50 joint venture. Terms of the acquisition,
expected to close December 31, 2008, were not disclosed.
In the transaction, La Coop fédérée will acquire the shares of ACC
- The ACC corporate office and grain assets based in Belton, Ontario;
- Wellburn Agromart Limited, a crop inputs and grain subsidiary of ACC
located in Wellburn, Ontario;
- An ownership position in 20 Agromart retail businesses across
four Eastern Canadian Provinces, operated as joint ventures between
ACC and independent business partners, with ACC continuing as a joint
venture partner (owned by La Coop fédérée);
- Indirect ownership interests in affiliated companies serving the
Agromart businesses, including Agromart Terminals, Inc. and Agromart
Processing Company, Inc.
Claude Lafleur, CEO, said the acquisition supports the Canadian
cooperative's focus on being the first cooperative marketer and supplier in
Eastern Canada for Canadian agricultural producers. "For some years now, La
Coop fédérée has been pursuing its expansion throughout Canada thanks to
acquisitions comparable to the one being announced today. We are convinced
that our expertise, when combined to that of our new partners involved in this
transaction, will benefit all our clients," Lafleur, said.
Land O'Lakes and CHS also positioned the transaction as a positive
"This transaction enables us to further intensify our focus on wholesale
crop nutrients and crop protection products," Land O'Lakes President and CEO
Chris Policinski and CHS President and CEO John Johnson said in a joint
statement. "Further, we were pleased to be able to position Agronomy Company
of Canada with a buyer that offers considerable experience and expertise
within the inputs, seed and crop protection industry. We believe this
transaction is a positive strategic move for Land O'Lakes and CHS, La Coop
fédérée and ACC."
La Coop fédérée (www.lacoop.coop) is a federation of agricultural
cooperatives in the province of Quebec, Canada. Originally founded in 1922, it
is now comprised of 95 cooperatives belonging to 76 000 members. These
cooperatives meet the many and varied needs of both agricultural producers and
consumers who joined together for greater access to high quality products and
services at competitive prices. In fact, as a wholesaler, La Coop fédérée
supplies farmers in Quebec, Ontario and New Brunswick with the goods and
services required to operate their businesses, including hardware and oil
products. Furthermore, through its subsidiary company, Olymel L.P., La Coop
fédérée is involved in the processing and marketing of pork and poultry
products on local and international markets. La Coop fédérée and its network
of affiliated cooperatives employ nearly 17,000 people with cumulative sales
approaching 5 billion dollars.
Land O'Lakes, Inc. (www.landolakesinc.com) is a national, farmer-owned
food and agricultural cooperative with annual sales of more than $11 billion.
Land O'Lakes is a Fortune 300 company which does business in all 50 U.S.
states and more than 50 countries. It is a leading marketer of a full line of
dairy foodservice and food ingredient products across the United States;
serves its international customers with a variety of food and animal feed
ingredients; and provides farmers and ranchers with an extensive line of
agricultural supplies (feed, seed, and crop protection products) and services.
Land O'Lakes also provides agricultural assistance and technical training in
more than 25 developing nations.
CHS Inc. (www.chsinc.com) is a diversified energy, grains and foods
company committed to providing the essential resources that enrich lives
around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and
cooperatives, along with thousands of preferred stockholders, from the Great
Lakes to the Pacific Northwest and from the Canadian border to Texas. CHS
supplies energy, crop nutrients, grain, livestock feed, food and food
ingredients, along with business solutions including insurance, financial and
risk management services. The company operates petroleum refineries/pipelines
and manufactures, markets and distributes Cenex(R) brand refined fuels,
lubricants, propane and renewable energy products. CHS is listed on the NASDAQ
For further information:
For further information: Lani Jordan, CHS Inc., (651) 355-4946,
email@example.com; Lydia Botham, Land O'Lakes, Inc., (651) 481-2123,
firstname.lastname@example.org; Martin Scallon, La Coop fédérée, (514) 247-8509,