In a move that will enable the company to reinvest in its U.S. grain business, Minnetonka-based Cargill is selling a group of elevators in five states to Inver Grove Heights-based CHS Inc.
Cargill made the decision during a regular portfolio review, which the privately held company routinely does "to ensure assets best fit our strategy to meet long term market demands," the agricultural giant said in a statement to the Star Tribune.
Grain elevators in the southwest and western regions of Minnesota are among a group of eight being sold. Other elevators are located in Illinois, Nebraska, Colorado and South Dakota.
Terms of the deal were not disclosed. It's expected to close in June.
Cargill said the decision to sell the elevators was not related to the company's 2023 acquisition of Owensboro Grain Co., a family-owned soybean processing facility and refinery located in Owensboro, Ky., which it previously stated would enhance its goal of increasing its oilseeds network across North America.
"We are committed to the grain business in the U.S. and will now be able to devote appropriate resources to, and reinvest in, our remaining assets to ensure we are able to best serve our customers through a seamless end-to-end system," the statement read.
Cargill called CHS "the right partner for this sale" based on the organizations' existing partnership.
CHS said the purchase will boost its enterprise supply chain and connect its farmer-owners "to the global marketplace."
"The locations and facilities that are part of this expansion were strategically selected to allow us to continue enhancing our grain facility network in select geographies," said Rick Dusek, executive vice president of ag retail, distribution and transportation at CHS. "By adding assets to our CHS ag retail network in these areas, we are able to move our owners' grain more efficiently into the global supply chain through our terminals, particularly in the U.S. southern plains."
CHS, the nation's top-grossing cooperative, recorded revenue of $45.6 billion for its fiscal 2023, down 5% from 2022.
Cargill recorded $177 billion in revenue for its fiscal 2023, a 7% increase from fiscal 2022, according to the company's annual report.
