Ag Processors Alliance has offered a proposal to acquire AGP. The proposed transaction would give AGP owners the ability to seek opportunities in today’s agriculture landscape.
Ag Processors Alliance, LLC, an Omaha-based company, has delivered a letter of intent to acquire Ag Processing Inc. (AGP), an Omaha-based cooperative currently owned by local and regional cooperatives and individual members in several Midwestern states. The letter of intent was delivered to AGP’s board of directors and management this morning.
The proposed acquisition, valued at up to $850 million, would provide AGP cooperative members with the liquidity that the current co-op structure does not provide, except at very low prices relative to the book value of AGP.
Ag Processors Alliance, LLC (APA) was formed exclusively for the acquisition of AGP under the leadership of Ag and Food Associates (AFA) of Omaha, an investment banking firm that is managing the project on behalf of an investment group that has a specific interest and expertise in agricultural operations.
“It is incredibly difficult, if not impossible, to receive outside investment in a cooperative structure. This acquisition would change that structure and create new liquidity for the local and regional cooperatives and other members that currently own AGP. Liquidity is something that many current AGP owners have asked for over the years, and we are pleased to have put together this proposal to try and make it happen,” said Mark Lakers, president of AFA.
“Agriculture has changed dramatically over the past two years, and many local cooperatives have been unable to take advantage of these changes,” Lakers said. “The proposed transaction would give these cooperatives liquidity in their investment in AGP and the ability to seek opportunities that capitalize on this new paradigm and support the growth in agriculture and in rural communities.”