Cargill has closed on its agreement to acquire the animal feed business of Southern States Cooperative Inc. The deal was announced in early August and closed on Sept. 22.
Under the agreement, Cargill purchased the assets of Southern States Cooperative’s animal feed business, including seven feed mills and its portfolio of products, brands and customer and supplier relationships. The other segments of Southern States Cooperative’s business — retail, farm supply, energy and agronomy — were not part of the transaction.
Mark Lueking, U.S. managing director of Cargill Feed & Nutrition, said the combination of Cargill Feed & Nutrition U.S. and the Southern States animal feed business "will help us grow with customers and best meet their ever-changing needs. We are excited about this growth opportunity to further demonstrate our commitment to the U.S. animal feed industry.”
The acquisition strengthens Cargill’s distribution and go-to-market capabilities in the Southeast, mid-Atlantic and Northeast regions of the U.S. and provides a pathway for continued growth across the region, the company said. In addition to the acquisition, a long-term supply agreement has been completed whereby Cargill will supply its retail stores with Southern States branded feed.
"We believe that our combined business will provide unique benefits to our members and customers," said Jeff Stroburg, president and chief executive officer of Southern States. "We've brought together two best-in-class feed companies to develop solutions to meet their needs. We look forward to growing the Southern States feed business with Cargill as our partner."
Cargill provides food, agriculture, financial and industrial products and services to the world.
Cargill’s animal nutrition business has more than 20,000 employees at more than 275 facilities in 40 countries. Fueled by innovation and research, it offers a range of products and services to feed manufacturers, animal producers and feed retailers around the world, helping put food on the plates of nearly 1 billion people every day. Cargill’s animal nutrition business offers a range of compound feed, premixes, feed additives, supply chain and risk management solutions, software tools and animal nutrition expertise.
Southern States is a Richmond, Va.-based farm supply retailer and service cooperative. As one of the nation's largest agricultural cooperatives, it provides a wide range of farm inputs, including fertilizer, seed, livestock feed, pet food, animal health supplies and petroleum products, as well as other items for the farm and home. Founded in 1923, the cooperative is owned by more than 200,000 farmer-members and serves its members and non-member customers through 1,200 retail outlets in 23 states.