Farmer-owned co-operative CHS has bought the Northstar Agri Industries canola processing and refining plant near Hallock, Minnesota from PICO Northstar Hallock LLC, a majority-owned subsidiary of PICO Holdings, Inc.
The price was US$127 million.
The Hallock canola plant, which is close to the Manitoba border, processes more than 400,000 tonnes of canola a year into oil and meal. The North American canola crushing sector has been struggling with weak crush margins.
Northstar has a canola delivery facility in Winkler, Man.
“Specifically, the acquisition expands our oilseed processing platform to include canola in addition to soybeans, adds to CHS presence in Canada, expands CHS oil product offerings to global food companies, and links growers purchasing canola seed from CHS-owned retail outlets to an integrated supply chain,” Tom Malachi, CHS vice-president for processing and food ingredients, said in a news release.
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Neil Juhnke, president of Northstar Agri Industries, said CHS was a good fit because it is a financially strong, farmer-owned co-operative with Minnesota roots that is committed to growth and profitability.
The Hallock facility will be rebranded as CHS, and its 57 employees will become CHS employees.
