AgVantage FS and Nexus Cooperative Announce Plans to Trade Facilities
AgVantage FS (Waverly, IA) and Nexus Cooperative (Charles City, IA) have reached an agreement whereby Nexus will acquire the Aplington, Chapin, and Dewar, Iowa, grain assets from AgVantage FS, and AgVantage FS will acquire the Elgin, Lamont, and Randalia, Iowa, agronomy assets from Nexus. This asset exchange follows extensive discussion between the two cooperatives around how each could better utilize their facilities, staff, and other resources to improve operational efficiencies in service to their members.
“This decision was driven by both cooperative’s desires to do what’s right for the employees and producers of these communities for the long term,” said Jason Schwenneker, CEO of Nexus. “We believe this asset exchange is a better strategic fit for both cooperatives, which in turn will enable improved investment and service to area producers going forward.”
Leaders within both companies are finalizing details for an early August transition of ownership.
“Every decision we make is with the benefit of our members in mind. By focusing on our strengths in the agronomic services area, the facilities and equipment we’ll gain in this agreement will position us for long-term growth,” said Matt Kruse, Retail Division Manager for AgVantage FS. “This partnership demonstrates our desire to partner with organizations that align with our principles and create tangible benefits that will benefit the members we serve.”
Both companies will continue to work in close cooperation to ensure there are no disruptions to farmer service during the transition. Nexus will honor all grain contracts at any of the AgVantage locations. AgVantage will honor and service any agronomy customer contracts at the Nexus locations. This change in asset ownership will not impact farmer equity in either cooperative.
Farmers can continue to communicate with their location through this transition to assist with any questions.
Nexus Cooperative is a full-service member-owned ag cooperative operating across northern Iowa and southern Minnesota with over a century of rich tradition and over 4,500 current farmer members. Nexus employs over 250 individuals who are specialized on products, services and trends within agronomy, energy, feed, and grain.
AgVantage FS, a retail division of GROWMARK Inc., is headquartered in Waverly, Iowa, and provides a broad range of agricultural and energy-related products to members in 34 counties in Iowa and Minnesota. AgVantage currently provides 275 jobs within the rural communities it operates in and strives to provide unsurpassed customer service to its members both on and off the farm. Learn more about AgVantage FS at AgVantageFS.com.
GROWMARK, Inc. is an agricultural cooperative serving almost 400,000 customers across North America, providing agronomy, energy, facility engineering and construction, and logistics products and services, as well as grain marketing and risk management services. Headquartered in Bloomington, Illinois, GROWMARK owns the FS trademark, which is used by member cooperatives. More information is available at GROWMARK.com.