Cargill To Sell Off Its Midwest Ag-Retail Outlets
Cargill announced late Wednesday that its 18 agriculture retail stores would be sold to Agrium Inc. for an undisclosed amount.
The Cargill locations, which are peppered across the “Corn Belt” region in Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana, bring in annual revenues of more than $150 million.
Its Minnesota outlets are in Benson, Alberta, Pipestone, Gluek and Marna. Fewer than 200 workers are employed across all 18 sites, according to reports.
Cargill, an agriculture and industrial specialties company from Minnetonka, will maintain its Canadian crop retail business following the deal.
Instead, “Cargill will focus on being the world’s leading merchant of grain and oilseeds,” said Roger Watchorn, group leader of the company’s agricultural supply chain.
Meanwhile, Agrium, a Calgary-based supplier of fertilizers and other products, will assume a larger stake in the U.S. The $15 billion company holds most of its operations in Canada, Australia and the U.S., along with other facilities in Egypt, Morocco and a number of South American countries.
“The locations [that are being acquired] are in regions where we currently have a limited presence,” said Agrium CEO Chuck Magro in a statement. “This acquisition will allow us to capitalize on synergies related to the introduction of our proprietary products and services, and leveraging our extensive distribution network.”
The sale between Cargill and Agrium is subject to customary closing conditions and regulatory clearances. Officials expect the deal the close near the end of September.