CHS Acquires Nor-Lakes Liquid Lubricant Business and The Farm-Oyl Company
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INVER GROVE HEIGHTS, Minn., April 16 / -- CHS Inc. (NASDAQ:CHSCP), a leading energy, grains and foods company, has signed a purchase agreement to acquire the liquid lubricants business of Nor-Lakes Services Midwest, Inc., of Hugo, Minn., and The Farm-Oyl Company of St. Paul, Minn., as part of a strong commitment to growing the CHS lubricants business. The closing on the purchase is expected to occur April 30, 2007.
Nor-Lakes Services Midwest is a private label lubricants manufacturer founded in 1988 to produce private label lubricants and greases, including the Farm-Oyl(R) brand. The Farm-Oyl Company has been marketing heavy-duty lubricants to Upper Midwest customers since 1929.
"This new acquisition reflects our commitment to being a dependable, long-term lubricants supplier, and allows us to optimize our manufacturing facilities," said Anwer Hussain, Senior Vice President of Lubricants. "Farm-Oyl, like CHS, has a deep-rooted tradition of meeting the tough demands of agricultural and commercial customers with reliable lubricants for more than 75 years."
James Taglia, Nor-Lakes Services Midwest President, said all liquid lubricant production would be transferred from the Hugo location to CHS facilities effective May 1. "We're excited about this acquisition. CHS has a strong commitment to being a long-term, dependable supplier and is equally committed to continuing to serve our customers," Taglia added.
"The Farm-Oyl Company was founded on the values of commitment, integrity and hard work," said Robert Larson, President and CEO of The Farm-Oyl Company. CHS shares those values, and will continue to be a dependable supplier of quality Farm-Oyl branded lubricants," Larson added.
CHS produces Cenex®-branded and other lubricants at three ISO-9001:2000- certified manufacturing facilities in Minnesota, Ohio and Texas. The company markets a full line of lubricants for use in agricultural, commercial, recreational and industrial equipment.
Nor-Lakes Services Midwest's NL Grease LLC will continue to produce and distribute grease products from its Kansas City manufacturing facility.
Terms of the joint acquisition were not disclosed.
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® 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:Ann Mann, Director of CHS Energy Communications,+1-651-355-4604
Web site: http://www.chsinc.com/
