The acquired company operates a canola processing and refining plant near Hallock, Minnesota, which processes more than 400,000 tons of canola seed annually, turning it into canola oil and canola meal.
The farmer-owned cooperative purchased Northstar Agri Industries from PICO Northstar Hallock LLC, a majority-owned subsidiary of PICO Holdings, Inc. Financial details of the transaction were not revealed.
“Acquisition of Northstar Agri Industries adds value to CHS owners across the enterprise from inputs to value-added processing ingredients to the marketplace,” commented Tom Malecha, CHS vice president for Processing and Food Ingredients. “Specifically, the acquisition expands our oilseed processing platform to include canola in addition to soybeans, adds to CHS presence in Canada, expands CHS oil product offerings to global food companies, and links growers purchasing canola seed from CHS-owned retail outlets to an integrated supply chain.”
The Hallock facility will now be rebranded as CHS and its 57 employees will become employees of CHS.
Neil Juhnke, president of Northstar Agri Industries, said that CHS is a financially strong cooperative with Minnesota roots that is committed to growth and profitability. “The new ownership structure adds security and many value-added opportunities for canola growers in our region,” Juhnke added.
This acquisition comes two months after CHS acquired its second ethanol plant, a facility that produces 125 million gallons of ethanol annually.