River Region Cooperative and South Central Grain and Energy memberships approve merger
FAIRFAX – The memberships of River Region Cooperative (RRC), Sleepy Eye and South Central Grain and Energy (SCGE), Fairfax both approved the plan of merger of the two companies.
“Our cooperatives have been discussing this partnership for a long time. We have similar cultures, overlapping territories, and common investment needs,” said Larry Dean, Board President, SCGE. “We are proud to be a cooperative and even prouder that we have found a way to cooperatively work with our new partners.”
The cooperatives entered a merger study in early 2017 to identify if there were strategic, operational, and territorial benefits to a merger of the two companies. The vote was submitted to the membership on May 30, 2017 and tallied at a special meeting on June 16, 2017. Of eligible voters, 64 percent of RRC and 43 percent of SCGE members cast a vote. The merger was approved with 403 voting in favor, 124 in opposition at RRC, and 425 voting in favor, 99 in opposition at SCGE. Accounting firm, Christianson PLLP, certified the members of RRC and SCGE approved the merger by a super-majority of 76.47 percent and 81.11 percent, respectively.
A new name will be established for the unified company with a registered address of the Sleepy Eye, MN office location. Over 150 employees will continue to meet the needs of agricultural producers across the south-central MN region. Five directors from each legacy company will be selected to sit on the new board of directors. The effective date of the new company will be August 1, 2017 with David Peters serving as general manager.
“Each of our cooperatives brings strengths to this merger that I am excited to see expanded to the joint memberships. Clearly, the memberships also saw these strengths when casting their ballots. We look forward to August 1 and working with our new partners,” added Bruce Kuelbs, Board President, RRC.
To learn more, visit riverregioncoop.com or scgemn.com.