CVA and UFC Member-Owners Approve Merger
July 1, 2014 by lmorgan
The Board of Directors of Central Valley Ag Cooperative (CVA) and United Farmers Cooperative (UFC) met July 1 to ratify the votes cast by their respective member-owners approving the merger of the two companies effective September 1, 2014. Each cooperative’s membership voted on the merger proposal, with Nebraska law requiring 2/3 of the votes cast to favor the proposal in order to be ratified. Accounting firm Gardiner Thomsen certified that the owners of both cooperatives overwhelmingly approved the merger proposal. The unified cooperative will retain the Central Valley Ag name and be headquartered in York, NE with Carl B. Dickinson serving as CEO.
“I am very pleased that the patrons of both cooperatives entrusted the vision and due diligence of their board members and leadership teams to approve their recommendation to merge two strong cooperatives focused on creating value for our customers” says Dickinson. “The new CVA will provide the opportunity for expanded services and facilities, increased savings, and accelerated equity redemptions for the benefit of our member-owners. We also expect to be able to attract and retain the best employees to provide world-class service for every customer.”
Initial merger discussions between the companies began in early 2013, with the respective boards meeting in March 2014 to unanimously approve an Agreement and Plan of Merger. Ballots were distributed to the owners of the cooperatives in May with the final tally of votes completed June 30th.
Doug Derscheid, current CEO of CVA, stated “It’s very gratifying to receive such an overwhelming approval from our membership. They have truly set the stage and positioned their Cooperative to serve their needs and the needs of generations to come. In my 44 years of cooperative employment and 38 in CEO positions, with many mergers and acquisitions during that time, this one is undoubtedly the very best in every measurement. Very exciting times are in our future.”
About Central Valley Ag Cooperative
Central Valley Ag Cooperative was formed in 2003 by the combination of Agland Coop of Oakland, Central Farmers Cooperative of O’Neill, and Tri Valley Cooperative of St. Edward. CVA merged with Northeast Cooperative in 2005, adding nine locations, and later that year purchased the assets of Precision Agronomy LLC and continued business through their seven locations. In 2011, CVA completed the purchase of an existing feed mill in Duncan, NE and later that year purchased Ortmeier’s Seed & Feed in West Point to enhance their ability to service livestock customer’s needs. CVA had sales of $687 Million in fiscal year 2013 with a Local Net Profit of $13.5 Million.
About United Farmers Cooperative
United Farmers Cooperative was created in 2001 from the merger of United Co-op Inc. of Hampton, Farmers Cooperative Association of York, and Farmers Co-op Business Association of Shelby. In 2005, UFC acquired the Greenleaf, Haddam, Linn, and Washington locations in Kansas; followed in 2006 by merging with additional Kansas locations in Agenda, Barnes, Clifton, Clyde and Narka. Cuba, Kansas was added as a basic agronomy location in 2007 and UFC purchased H&H Grain Company in Norway, KS in 2008. Midwest Ag Partners, LLC in Marquette, NE was acquired in 2012 and, most recently, Jensen Fertilizer in Aurora, NE was purchased in 2013. UFC had sales of $709 Million in fiscal year 2013 with a Local Net Profit of $9.8 Million.
The new Central Valley Ag Cooperative will consist of 66 locations across eastern Nebraska and northern Kansas with over 800 employees dedicated to “Growing Agriculture Together” with their patrons. The cooperative offers a wide range of products, services, information, and innovation through its Agronomy, Energy, Feed and Grain divisions to meet the needs of agricultural producers across the region. Central Valley Ag Cooperative has a proud history on which the foundation has been laid for building a promising future in agriculture.