MELFORT, NIPAWIN — A local agriculture services company focused on crop inputs has been acquired by two co-ops.
Lake Country Co-op and Prairie North Co-op announced Feb. 15 they’ve entered into agreements to purchase Paragon Ag Services’ three Saskatchewan retail ag sites and two anhydrous ammonia locations.
“Prairie North Co-op has made strategic investments to grow our ag business over the past year,” said Terry Tremblay, Prairie North’s general manager. “The addition of these assets will significantly increase our anhydrous ammonia business and enable us to even better serve the needs of our ag customers.”
Prairie North will acquire the Melfort and Brooksby sites, while Lake Country Co-op will acquire the Kinistino location and an anhydrous ammonia site near Gronlid.
“We are excited for this opportunity to grow our ag footprint and contribute to the long-term sustainability of our business” said Tim Keller, Lake Country’s CEO. “Making investments in our communities and creating value for our members and customers is at the core of who we are as a co-op.”
Paragon Ag Services has been in operation since 1999. The two co-ops said they are working with Paragon owners Sherman Boland and Don Nash to ensure a smooth transition for employees and customers.
“Finding a partner who shares our values and could keep our business local was important to us,” Boland said. “Each of these co-ops are part of the communities we serve, so they understand the needs of local farmers and we’re confident our customers will continue to receive the same great service as we make this transition.”
Paragon’s full-time employees will all be offered similar employment with the local co-ops, which will continue to deliver fertilizer, seed and crop protection services to customers in the local area, the two co-ops said.
The transaction is subject to customary closing conditions and is expected to close in mid-February. The co-ops said the financial terms of the transaction will not be publicly disclosed.