Board Approves Merger of Two Grain Co-operatives
The Board of Directors of Cooperative Grain and Supply (CG&S) has voted to approve a pending unification agreement that would see the merging of the co-op with Mid-Kansas Cooperative (MKC).
Currently, MKC has 36 locations with elevator capacity for over 40 million bushels of grain, ranking it 71st of the top 100 largest ag c-ops in the U.S. according to the U.S. Department of Agriculture (USDA). The merging of CS&G would add five additional locations and 4.22 million tons of storage capacity to these holdings.
CG&S already participates in TMA, the grain marketing unit of MKC, and through the merger, CG&S will increase its share of the profits generated from the Canton-based train loading facility, which is 50 percent owned by MKC.
An initial letter of intent for unification was released in June 2016, with due diligence being conducted since.