Company to maintain Kanza name, will create a large footprint in South-Central Kansas
On December 10, members of the Andale Farmers Cooperative, headquartered in Andale, voted to merge with Kanza Cooperative Association of Iuka, with 88% of Andale stockholders present voting in favor of the move. The next day, Kanza’s stockholders provided their input, voting unanimously to accept the merger, creating a producer-owned agribusiness footprint that covers Harvey, Pratt, Reno, Sedgwick, and Stafford Counties. The joining of the two companies creates a business with roughly 270 million dollars in gross sales and a net profit of 8.6 million. It will offer services in grain, crop production, fuels, and farm supply, along with other various programs and products.
The two companies have been in merger discussions since June, citing the changing agricultural marketplace and the need for strategic growth to further meet those needs. As Earl Wetta, Board Chairman of Andale, and Mike Christie, Board Chairman of Kanza, stated at the outset of the talks, “It is important that our cooperatives grow in size and scale to effectively continue to serve our members to be able to supply them with the products, services, and risk management tools that today’s producer expects and deserves.”
Both companies bring a wealth of experience to the merger. Bruce Krehbiel, CEO of Kanza, stated, “Kanza Coop is excited to work with the employees, farmers, and ranchers of the Andale Farmers Cooperative area. Their rich 75 year history, blended with Kanza’s 100 year history, brings a wealth of intellectual property to this union. I commend the boards of directors of both firms to have the foresight to bring together two such longstanding, successful cooperatives.”
The combined company will be called Kanza Cooperative Association. The merger becomes effective January 1, seeking to provide their members with all the benefits of the merger as soon as possible.
