Agricultural cooperative CHS acquired eight grain facilities from Cargill to help farmers bolster operations and access the global marketplace.
The purchase is tentatively planned to close in early June, according to a CHS announcement. No financial details were disclosed.
“Our farmer-owners look to CHS to provide them with local assets that have the speed and space to serve their needs today and into the future,” Rick Dusek, CHS executive vice president of ag retail, distribution and transportation, said in a statement. “Purchasing these grain assets is part of a larger strategy to invest in our enterprise supply chain."
The deal includes assets in Minnesota, Illinois, Nebraska, Colorado and South Dakota. CHS earlier this month reported higher grain and oilseed sales volumes for the second quarter due to "improved efficiencies and a more balanced global supply and demand environment."
The agricultural cooperative has made new investments in global supply chain assets to help farmers find new markets and ways to offset the falling grain prices. CHS partnered with Broadbent Grain last fall, for example, to establish a bulk grain export terminal in Australia.
