CHS Acquires DDG Business of Commodity Specialists Company
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ST. PAUL, Minn., Aug. 3 -- CHS (NASDAQ:CHSCP), a leading grains, food and energy company, and Commodity Specialists Company (CSC) have entered into a definitive purchase agreement for CHS to acquire the distillers dried grain (DDG) marketing business of CSC. The transaction has been approved by the boards of both companies and is scheduled to become effective in the coming week. Steve Markham and Sean Broderick, current managers of this operation for CSC, will continue to direct the activity of this unit as employees of CHS.
"For the last 20 years, CSC has successfully focused on being the premier independent DDG marketer in the ethanol industry," said Phil Lindau, CSC co-president. "As volume in the ethanol industry continues to expand rapidly over the next five years, we determined our DDG business would benefit from the resources of a larger entity."
"This DDG business, in addition to providing exceptional sourcing for current CSC customers, also provides an excellent supply complement to CHS grain and by-product customers, both domestically and internationally," said Rick Browne, senior vice president, CHS Grain Marketing. "Putting together CSC's marketing and industry expertise with our global access and established distribution capabilities will enhance the already high level of service and market execution to both ethanol plant suppliers and DDG customers."
CSC (http://www.csc-world.com/) is a privately-held Minneapolis-based company and one of the largest by-product feed trading and marketing firms in the U.S. The company continues as a successful niche merchandiser actively involved in a variety of feed products, such as brewer's grain, protein meals, and middle protein products. CSC and its affiliates are also active in the worldwide sugar trade and other niche food products, such as peas and lentils.
CHS Inc. (http://www.chsinc.com/ ) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives. A Fortune 500 company, CHS is owned by farmers, ranchers and cooperatives from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas, along with thousands of preferred stockholders. CHS provides products and services ranging from grain marketing to food processing to meet the needs of customers around the world. It also operates petroleum refineries/pipelines and, through a broad range of working partnerships, markets and distributes Cenex(R) brand energy products and renewable fuels, along with agronomic inputs and livestock feed to rural America. CHS is listed on the NASDAQ at CHSCP.
Source: CHS Inc.
CONTACT: Lisa Graham-Peterson of CHS Inc., +1-651-355-4523, lisa.graham@chsinc.com; or Phil Lindau of CSC, +1-612-330-9889, pjlindau@csc-world.com
Web site: www.chsinc.com/
http://www.csc-world.com/
