Utah Cooperator, April-May 1976;

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CENEX To Expand Operations into
Utah Market with Utah Co-op Acquisition
CENEX, the leading agricultural supply cooperative in 10
states which include Washington, Oregon, Idaho, Montana,
Wyoming, North and South Dakota, Nebraska, Minnesota,
and Wisconsin, has acquired Utah Cooperative Association.
Headquartered in South St. Paul, Minn., CENEX serves
more than 350,000 farm families through the more than 1200
locally owned cooperatives it supplies.
Sales reached a record $491,000,000 during fiscal year
ending 1975. Savings also reached a new high of $50,778,000
compared to $38,950,000 reported in 1975. CENEX President Jerry Tvedt attributed the sales increase to a substantial rise in the volume of product delivered and to the growing
number of farmers and ranchers CENEX serves.
CENEX supplies a wide range of products from gas and
diesel fuel to multi-purpose greases and oil; from fertilizer
and feed to agricultural chemicals and herbicides; from
commercial and residential paints to modern appliances and
hardware.
CENEX-owned facilities include oil wells and a refinery,
pipelines and terminals, a modern warehousing system, Soil
Service Centers and LP Gas Plants, feed and seed plants all
strategically located throughout its service area to serve its
farmer-owners.
Organized in 1931 with a paid-in capital of $525, CENEX
has returned $160 million in cash to its member-owners
during its 45-year history. Today farmers have a net equity of
almost $195 million in CENEX.
CENEX is a major shareholder of Universal Cooperatives
at Alliance, Ohio which supplies CO-OP tires, auto accessories, appliances, hardware, a complete line of livestock
equipment, milking equipment, and twine.
CENEX is one-third owner of one of the world's largest
cooperative petroleum refineries, the National Cooperative
Refinery Association at McPherson, Kansas. The regional is
also a partner with 14 other cooperatives in an international
search for new sources of oil. The company this group of
cooperatives has formed, known as LVO, International, is
currently drilling for oil in Egypt.
CENEX is a major shareholder of CF Industries, Chicago,
111., the world's largest cooperative fertilizer manufacturer.
Through this ownership CENEX provides farmers it serves
with a complete line of plant foods and a distribution system
that includes warehouses, terminals, tank cars and barges.
CENEX provides a variety of management and technical
services to assist local cooperatives in their growth.
Specialized training programs are available for employees of
local cooperatives.
In its 45-year history sales of the regional supply cooperative total $3.7 billion with net savings of $317.7 million.
Appointments
Made by CENEX
Three UCA employees, W.B.
Robins, John G. Carr and
Robert D. Bess, have been
named to newly-formed positions with CENEX.
W.B. Robins
W.B. Robins, General
Manager of UCA, has been
named Western Area Development Manager for
CENEX. In this position he
will work closely with local
Utah cooperatives and the
CENEX field staff to help effect an orderly transition
from UCA to CENEX. Robins has been a UCA employee since 1936.
The Utah C
• it •
erator
Volume 27, Number 2
ANYONE CAN SHOP CO-OP-~ MEMBER OR NOT
April-May 1976
UCA Shareholders Vote to Merge
with CENEX
Salt Lake City, Utah — The Utah Cooperative Association,
a Salt Lake City based farm supply cooperative, will join
CENEX, a regional farm supply cooperative based in South
St. Paul, Minnesota, officials of both cooperatives announced
today.
The announcement was made jointly by J.G. Tvedt.
CENEX President, and W.B. Robins, General Manager of the
Utah Cooperative Association (UCA), following approval of
the sale by UCA stockholders at a special shareholders' meeting held April 1st.
Under the terms of the agreement, CENEX will purchase
the assets of UCA, which will then enable UCA to retire stock
currently held by local Utah cooperatives, which amounts to
approximately $1.2 million. The effective date of the acquisition, and the date CENEX will begin supplying Utah
cooperatives, will be May 1, 1976.
UCA in 1956 at present location.
Today's Expanded Operation.
Clark J. Wall, UCA President, Maury Miller, CENEX Budget
Coordinator and W.B. Robins, UCA General Manager sign
merger.
"Meetings and negotiations between the two cooperatives
have been underway for several months," CENEX President
J.G. Tvedt said. "The unification of UCA cooperatives with
CENEX offers definite economic advantages to Utah area
farmers, and will provide them with a reliable source of
agricultural supplies."
According to W.B. Robins, UCA General Manager, "Utah
farmers and ranchers will now share ownership through
CENEX in basic production facilities, including fertilizer
plants, oil refineries, and seed plants."
Robins said Utah area farmers will be joining a financially strong organization. "Farmers and ranchers throughout 10 states have $ 195 million worth of equity in CENEX. In
its 45-year history the regional has returned $160 million in
cash to its member-owners. Now Utah cooperatives will
share this financial strength."
The transaction will include the transfer of all UCA assets
to CENEX, effective May 1. On this date CENEX will also
begin supplying UCA cooperatives and several dealer agents. Approximately 35 UCA employees will be transferred
to CENEX. Also included is the acquisition of the PAX Company, a UCA subsidiary which distributes the PAX brand of
lawn and garden products throughout the United States.
The Utah Cooperative Association serves 17 locally-owned
cooperatives and 9 dealer agents throughout Utah. Sales in
its 1975 fiscal year, which ended September 30,1975, totaled
13,155,000.
John G. Carr
John G. Carr, UCA Treasurer and an employee for the
past 28 years, has been
named Financial Management Supervisor for
CENEX. In this new capacity Carr will work with the
CENEX field staff and local
Utah cooperatives to assist
with the financial and credit
programs. He will continue
to handle UCA securities
held by patrons and will
oversee the credit card program involving accounts receivable with local cooperatives.
Robert D. Bess
Robert D. Bess, who has
served as Marketing Manager for UCA, has been
named General Manager of
the PAX Company for
CENEX. In this capacity he
will direct marketing and
sales for this subsidiary.
Bess has been an employee of
UCA since 1960.
The three appointments
are effective May 1.
CENEX is the leading agricultural supply cooperative
in the 10 states it presently
serves. It provides approximately 1200 locally-owned
cooperatives with a wide
range of farm and home supplies, and a variety of management and technical services.