USA – Mid Iowa Cooperative has reached an agreement to acquire a minority equity stake in some companies affiliated to Sinclair Elevator LLC.
According to the terms of the agreement, Mid Iowa will acquire Sinclair’s grain, feed and crop business at a site near Parkersburg, Iowa, US, with future right to buy additional equity in Sinclair.
Mid Iowa will provide its rich base of assets, as well as a commitment to ensure that farmers not only get better returns but also create value for their grain.
On the other hand, Sinclair is regarded as a high performing company offering modern large-scale feed mills located in Iowa.
The partnership aims to form a combined feed and grain assets capable of producing a total of 750,000 tons of feed per year and 2,300,000 bushels of grain storage capacity- according to Mid Iowa.
According to Mike Kinley, chief executive officer of Mid Iowa, Sinclair was a perfect match, given its top notch personnel and facilities located in a very complimentary fashion to their asset base.
He added that they were looking forward to adding even more value to local grain and supporting economic development in rural Iowa through these new business ventures.
These facilities give the two companies an opportunity to grow providing the products, services, agri-business resources, and technical expertise to help their local producers thrive in central and east-central Iowa.
Mid Iowa tabled intentions to expand into the grain industry in 2017 with construction of the cooperative’s new milling facility including 3.55 million bushels of grain storage in Phase 1 and modern grain-handling equipment that can handle 40,000 bushels per hour.
With Sinclair’s profound portfolio, the investment will enable Mid Iowa establish a strong supply chain in the grain industry, with Sinclair being a fundamental partner.
“I’ve known about Mid Iowa for a number of years and they have a reputation for building and maintaining first class grain facilities.
Once I heard about that new elevator I got to thinking about what it could do for our feed customers and the producers we buy grain from, it’s all about being competitive,” said Roger Baker, owner of Sinclair Elevator.