CHS Sells Stake in Joint Venture for $225M
CHS, Inc., has sold its 44.2 percent ownership in Brazilian agricultural company Multigrain, SA, for $225 million.
Multigrain, SA, is a joint venture between PMG Trading and Mitsui and Company, Ltd. Mitsui purchased CHS' 44.2 percent stake in the venture, doubling the Tokyo-based company's stake in Multigrain to 88.4 percent.
CHS announced Wednesday that it was “exploring a possible change in its ownership of Multigrain” and Mitsui made the official announcement Thursday morning.
“…CHS is continually examining its business arrangements, assets, and opportunities,” Mark Palmquist, executive vice president and chief operating officer of CHS' agricultural business, said in a statement. “While the Multigrain partnership has benefitted CHS and its shareholders, we recognize CHS needs a larger South American presence to achieve its long-term strategy of global growth.”
According to Mitsui, its total investment in Multigrain including the purchase of CHS' shares is $459 million.
CHS supplies energy, crop nutrients, grain, livestock feed, food, and food ingredients. It also offers business solutions including insurance, financial, and risk management services. It is among Minnesota's largest companies based on its revenue, which totaled $25.3 billion for the fiscal year that ended in August.