Cargill AgHorizons and Cunningham Fertilizers Ltd. announced the two companies have reached an agreement for Cargill to purchase the remaining shares of the Cunningham crop input business. For nearly a decade, the business has operated as a joint venture with Cargill.
The agreement closed on October 1, 2005, following the normal due diligence procedures typical of these types of transactions.
"Cargill is committed to ongoing investment and a strengthening of the Canadian grain industry," said Al Facchinutti, Cargill AgHorizons Farm Service Group manager. "Our primary responsibility will be to ensure the customers of Cunningham Fertilizers are provided with the same level of dedication and service they have received over the past 53 years. We are very excited about the opportunity to deepen our collaboration."
Officials from both companies said the agreement would combine Cargill's resources and expertise in value-based customer relationships with Cunningham Fertilizers' experience in agronomic solutions.
"Recognizing Cargill's commitment to creating more value for its suppliers and customers, this combination was a natural fit with broad benefits," said John Cunningham, president of Cunningham Fertilizers. "We truly see this as an opportunity to significantly enhance product and service offerings for Western Canadian agriculture over the long-term."