CHS affiliates Connell Grain and Sun Basin consolidating

The Connell Grain and Sun Basin affiliates of ag retailer CHS Inc. announced an agreement to consolidate operations to take advantage of economies of scale.

The merger is subject to due diligence and expected to close in time to operate as a single business on Sept. 1. A search has begun for a general manager.

“Our businesses are financially strong, but as the agricultural landscape continues to change with larger and larger operations, we need to keep up with the changing needs of our patrons with competitively prices products and services,” said Jed Pauley, board chairman of CHS Sun Basin.

Terms were not disclosed.

The two businesses are full-service ag retailers that serve farmers and customers in eight counties in Eastern Washington. They are part of CHS Inc., a farmer-owned agribusiness with interests in energy, grains and foods.

This story was originally published March 26, 2017 at 8:37 PM with the headline "CHS affiliates Connell Grain and Sun Basin consolidating."