Rabobank Buys Out Ag Services

Published online: Nov 03, 2003
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Rabobank International, the corporate and investment banking arm of The Netherlands-based Rabobank Group, announced an agreement to acquire Ag Services of America.

Rabobank will purchase 100 percent of the shares of ASA. ASA shareholders will receive value equivalent to $8.50 in cash for each ASA share, a premium of 39 percent over the closing price of $6.12.

Rabobank says the price values the total issued share of ASA at about $47 million. Rabobank plans to fiancé the transaction for existing funds.

ASA, based in Cedar Falls, IA, is a supplier of crop production financing to primarily corn and soybean growers. It also administers financing programs for suppliers, manufacturers and distributors in the agricultural industry in addition to providing ancillary services such as crop insurance and grain-marketing programs.

The company, which employs about 115 people in Cedar Falls and throughout the United Sates, has originated about $265 million in loans for the current crop year.

The boards of each entity have approved the acquisition and the sale is expected to close about December 31. ASA will retain its present structure with CEO Kevin Schipper retaining his current position in leading the new bank.