CPS eyes Cargill’s U.S. retail assets

Crop Production Services, a division of Calgary-based fertilizer company Agrium, is adding another 18 locations to its growing agricultural retail empire in North America.

Agrium announced July 6 that CPS and Cargill AgHorizons have reached a deal that will see CPS take over 18 Cargill retail operations.

All of the sites are located in the United States in Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana.

“This acquisition demonstrates our continued focus on growing our North American ag retail business,” Agrium president Chuck Magro said in a news release.

“The locations are in regions where we currently have a limited presence. This acquisition will allow us to capitalize on synergies related to the introduction of our proprietary products and services and leveraging our extensive distribution network.”

CPS is one of the largest crop input suppliers in the world.

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The company has more than 1,250 locations in North America, South America and Australia, including more than 200 retail outlets in Western Canada.

CPS has significantly expanded its footprint on the Canadian Prairies over the past few months, acquiring Northstar Fertilizers and Wigmore Farms.

Northstar had locations in Saskatchewan in Hudson Bay, Prairie River, Peesane, Arborfield and St Brieux, while Wigmore had Saskatchewan locations in Assiniboia, Avonlea and Ogema.

CPS also announced plans earlier this year to acquire Andrukow Group Solutions, which includes 18 retail locations in Alberta and western Saskatchewan.

The Andrukow deal included Dunvegan Ag Solutions, Crowfoot Ag Solutions, Flatlander Ag Solutions and the crop input operations of Providence Grain Solutions based at Gaudin and Waskatenau in Alberta

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CPS is also in the process of closing a deal with Wendland Ag Service, which has ag retail locations in Blaine Lake, Delmas, Domremy, Rosthern and Waldheim in Saskatchewan.

The most recent deal between CPS and Cargill does not involve Cargill’s Canadian crop input retail business.

The transaction is subject to customary closing conditions and regulatory clearances.

The deal is expected to close by the end of third quarter of 2016.

Contact brian.cross@producer.com

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