The boards of directors for MKC and Frontier Ag have unanimously approved to move forward with the processes required to merge the two cooperatives.
The boards of directors for MKC and Frontier Ag have unanimously approved to move forward with the processes required to merge the two cooperatives. The cooperatives announced in September their plans to explore the potential of an alliance.
Frontier Ag President and CEO Brad Cowan said the boards and management teams of both organizations spent the past sixty days completing the due diligence necessary to get to this point.
“We felt the time was right to pursue a merger,” Cowan said. “Combined we have the potential to position ourselves strategically for the future, creating tremendous opportunities for our members.”
MKC President and CEO Dave Christiansen said the cooperatives share a similar culture and vision, are comparable in product and service offerings, and are financially sound.
“Both cooperatives focus on improving customer experience,” Christiansen said. “Together we have the potential to increase our relevance in the industry, which will leverage our vendor relationships. The benefits this will deliver to our stockholders, employees, customers and communities are significant.”
Although the boards of both co-ops have endorsed the idea of a merger, each membership will be asked to approve it.
Frontier Ag, with annual sales of $490 million, is a full-service cooperative, offering grain, feed, agronomy, energy, and transportation products and services to over 5,700 members in 11 counties throughout northwest Kansas.
MKC, with annual sales of $450 million, is a full-service cooperative offering grain, feed, agronomy and energy products and services to over 6,400 members in 11 counties throughout central Kansas.