CVA And UFC Member-Owners Approve Merger
(York, NE) - The Board of Directors of Central Valley Ag Cooperative (CVA) and United Farmers Cooperative (UFC) met July 1 to ratify the votes cast by their respective member-owners approving the merger of the two companies effective September 1, 2014.
Each cooperative's membership voted on the merger proposal, with Nebraska law requiring 2/3 of the votes cast to favor the proposal in order to be ratified.
Accounting firm Gardiner Thomsen certified that the owners of both cooperatives overwhelmingly approved the merger proposal. The unified cooperative will retain the Central Valley Ag name and be headquartered in York, NE with Carl B. Dickinson serving as CEO.
"I am very pleased that the patrons of both cooperatives entrusted the vision and due diligence of their board members and leadership teams to approve their recommendation to merge two strong cooperatives focused on creating value for our customers" says Dickinson.
"The new CVA will provide the opportunity for expanded services and facilities, increased savings, and accelerated equity redemption for the benefit of our member-owners. We also expect to be able to attract and retain the best employees to provide world-class service for every customer."
Initial merger discussions between the companies began in early 2013, with the respective boards meeting in March 2014 to unanimously approve an Agreement and Plan of Merger. Ballots were distributed to the owners of the cooperatives in May with the final tally of votes completed June 30th.
Doug Derscheid, current CEO of CVA, stated "It's very gratifying to receive such an overwhelming approval from our membership. They have truly set the stage and positioned their Cooperative to serve their needs and the needs of generations to come. In my 44 years of cooperative employment and 38 in CEO positions, with many mergers and acquisitions during that time, this one is undoubtedly the very best in every measurement. Very exciting times are in our future."
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