BUSINESS CHANGES CONSIDERED FOR AGRILIANCE
Land O'Lakes Inc. and CHS Inc. are exploring strategic alternatives, including repositioning, for the retail agronomy business of Agriliance LLC. Land O'Lakes and CHS each hold 50-percent interest in Agriliance LLC.
The two companies said that they have retained BMO Capital Markets (Chicago Office) to assist them in the repositioning process, and are currently in exclusive negotiations exploring the sale of The Agronomy Company of Canada, ProSource One and Agriliance retail locations in the southern U.S. to a group which includes certain members of the Agriliance management team and financial backers.
Last month, CHS and Land O'Lakes announced they were repositioning the Agriliance crop nutrients and crop protection products businesses. Land O'Lakes will acquire the crop protection products operations and related technical and support services, and plans to align it closely with its existing CROPLAN GENETICS(R) seed business. CHS will acquire the wholesale crop nutrients business, which will be operated as part of its Ag Business segment. This repositioning is expected to be completed in September.
At the time of the initial announcement, officials of the two companies said the repositioning would align each business segment (wholesale crop nutrients and crop protection products) with the core competencies and strengths of each parent company and is intended to intensify the focus on each business, provide opportunities for cost reduction and enable the even more effective supply of valuable crop inputs to members and customers. The repositioning of the operations announced today is consistent with those goals, they said.