Notice of Merger Study FAQ
Jan 04, 2023
Both cooperatives are performing financially, why merge together?
The Boards’ goal is to increase value to their members. Now is the best time to consider entering into a partnership as both cooperatives are financially sound. Furthermore, both boards believe a merger could create value for member-owners through improved efficiencies, expanded access to resources, and the ability to influence supply chains. This will allow both cooperatives the ability to accomplish more for our member-owners together than either would be able to accomplish separately, all while providing enhanced opportunities to attract and retain the best employees to keep our coop strong. The unification study will help uncover potential opportunities.
What will happen to the employees?
The boards and management of both cooperatives understand that their employees are their best asset. The benefit packages for both cooperatives are very similar, and if the entities merge, the employee benefits package will continue to be positive for the employees.
As it stands today, both cooperatives have over 50 job openings combined. With the current employment environment, attrition, and retirement planning, we believe there will be ample opportunities for employees, and changes will be minimal.
How will the new board of directors be selected?
The two boards have decided that the new cooperative board will consist of eight members. Each cooperative’s board of directors will select four members from their current boards to be representatives on the new cooperative’s board of directors.
What will happen to my equity?
All patrons’ equity would move to the new cooperative on a dollar-for-dollar basis. Equity revolvement is different between the two cooperatives today, but there will be a strategy developed to bring the two retirement plans together and achieve the best outcome for the membership over a period of time.
What will the new cooperative be called?
That is yet to be determined. As part of the informational meetings and the voting process, we would include requests from members for name suggestions for the new board to consider.
What would be the planned date for the merger to take effect?
The fiscal year end for both cooperatives is August 31, so it would make sense for September 1, 2023, to be the proposed effective date should the merger be approved.
Read More News
The Boards of Directors of Crystal Valley Cooperative, Mankato, MN and United Farmers Cooperative, Winthrop, MN have unanimously agreed to proceed with a formal unification study.