The memberships of River Region Cooperative in Sleepy Eye and South Central Grain and Energy of Fairfax have both approved the plan to merge the two companies.
The cooperatives entered a merger study in early 2017 to identify if there were tangible, strategic, operational and territorial benefits to a merger of the two companies. The vote was submitted to the member on May 30th and tallied at a special meeting June 16th. The merger was approved with 403 voters in favor and 124 votes in opposition.
A new name will be established for the unified company with a registered address of Sleepy Eye.
PRESS RELEASE
River Region Cooperative and South Central Grain and Energy memberships approve merger
Sleepy Eye, MN (6/16/17) – The memberships of River Region Cooperative (RRC), Sleepy Eye, Minn. and South Central
Grain and Energy (SCGE), Fairfax, Minn. 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 tangible 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% of RRC and 43% of SCGE member 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% and 81.11%, respectively.
A new name will be established for the unified company with a registered address of the Sleepy Eye, MN office location.
Over 150 dedicated 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.
about River Region Cooperative
River Region Cooperative, founded in 1890, is a full-service agricultural cooperative offering its customers access to grain,
energy, agronomy, and feed services in the Sleepy Eye, Minn. region.
About South Central Grain and Energy
South Central Grain and Energy is a farmer-owned and farmer-focused cooperative headquartered in Fairfax, Minn. with
locations in Buffalo Lake, Cosmos, Darwin, Fairfax, Gibbon, Hector, and Stewart. SCGE is a full-service cooperative,
offering members services in grain, agronomy, energy, and feed.