April 25, 2023: Merger Study Update
Apr 25, 2023
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The spring planting season bustle is upon us. As you embark on the season, our hope is that you will do so with confidence and trust in your cooperative. Our member-owners are at the forefront of the decisions we make, and that “members first” philosophy is guiding the UFC board of directors and leadership team throughout the merger study with Crystal Valley.
Our member-owners and the future success of the coop is the reason we are pursuing the merger study. The agriculture industry is changing at a rapid pace. Demand from the global marketplace, labor challenges, increased competition, rising costs and inflation, and the need to keep up with growing producers are largely fueling this change. To remain a viable player in the marketplace we must compete with national and regional brands in areas such as talent recruitment and retention, market influence, technology, and efficiency. The board of directors for both coops believe a merger would help us accomplish this and create exceptional value for member-owners. Through the merger study, we have analyzed the robust details of each business to determine if our beliefs are feasible.
The study is progressing with great meticulousness and the finish line is in sight. We’ve invested a significant amount of time conducting in-depth reviews on the intimate details of both organizations, otherwise known as due diligence. This process can be compared to a relationship, with the merger being similar to marriage and the due diligence period being similar to dating. Crystal Valley and UFC have been dating (or, conducting due diligence) since the merger study was announced in January. Currently, we are preparing to bring our “significant other” (Crystal Valley) home to meet our parents (our member-owners). A serious step in a relationship no doubt, and certainly not one that should, or has been, rushed.
When the merger study was announced in January, our plan was to complete the due diligence period, share the study findings with member-owners and hold a vote prior to spring planting. However, the process was delayed due to winter storms, meeting cancellations and rescheduling conflicts. At a recent joint board meeting, it was decided to complete the merger study and due diligence process after spring work and plan for informational meetings and a potential vote in early summer.
It is our desire to communicate all details of the merger study activity, our thoughts and the potential benefits to you, our member-owners. Assuming the study continues as we expect, we will send follow up communication after spring work has been completed. At that time, we will share details on informational meetings and a potential vote process. We thank you for your patience as we diligently look out for the future of your cooperative.
The UFC and Crystal Valley board of directors remain rooted in optimism. We are committed to making the best decisions to position your coop for future success. Like a successful marriage, a successful merger makes a new entity greater than the sum of the individual entities.
Thank you for your continued support!
Sincerely,
Jeff Manderscheid, Chairman of the Board Mitch Altermatt, CEO/ General Manager
Our member-owners and the future success of the coop is the reason we are pursuing the merger study. The agriculture industry is changing at a rapid pace. Demand from the global marketplace, labor challenges, increased competition, rising costs and inflation, and the need to keep up with growing producers are largely fueling this change. To remain a viable player in the marketplace we must compete with national and regional brands in areas such as talent recruitment and retention, market influence, technology, and efficiency. The board of directors for both coops believe a merger would help us accomplish this and create exceptional value for member-owners. Through the merger study, we have analyzed the robust details of each business to determine if our beliefs are feasible.
The study is progressing with great meticulousness and the finish line is in sight. We’ve invested a significant amount of time conducting in-depth reviews on the intimate details of both organizations, otherwise known as due diligence. This process can be compared to a relationship, with the merger being similar to marriage and the due diligence period being similar to dating. Crystal Valley and UFC have been dating (or, conducting due diligence) since the merger study was announced in January. Currently, we are preparing to bring our “significant other” (Crystal Valley) home to meet our parents (our member-owners). A serious step in a relationship no doubt, and certainly not one that should, or has been, rushed.
When the merger study was announced in January, our plan was to complete the due diligence period, share the study findings with member-owners and hold a vote prior to spring planting. However, the process was delayed due to winter storms, meeting cancellations and rescheduling conflicts. At a recent joint board meeting, it was decided to complete the merger study and due diligence process after spring work and plan for informational meetings and a potential vote in early summer.
It is our desire to communicate all details of the merger study activity, our thoughts and the potential benefits to you, our member-owners. Assuming the study continues as we expect, we will send follow up communication after spring work has been completed. At that time, we will share details on informational meetings and a potential vote process. We thank you for your patience as we diligently look out for the future of your cooperative.
The UFC and Crystal Valley board of directors remain rooted in optimism. We are committed to making the best decisions to position your coop for future success. Like a successful marriage, a successful merger makes a new entity greater than the sum of the individual entities.
Thank you for your continued support!
Sincerely,
Jeff Manderscheid, Chairman of the Board Mitch Altermatt, CEO/ General Manager