November 4, 2024
West Central Ag Services Patrons,
In 1906, my great-great grandparents, J.A. & Jessamine Burgum began managing Arthur Farmers Elevator. They stabilized the fledgling business through strong leadership and a passion for innovation by focusing on their customers’ needs.
Over a century later, a lot has changed: trucks replaced horse-drawn wagons, acres are harvested in hours and agriculture is traded globally. We’ve seen it all happen and with the pioneering spirit inherited from my great-great grandparents, Arthur Companies has evolved with it. Through it all we have remained a family-owned and family-run business.
We don’t treat our customers and partners like there’s no tomorrow. Our perspective is generational. At our 100th anniversary celebration, we read the family names of our very first customers from the company ledger. One hundred years later, many of those families were still in the room celebrating with us.
We understand that West Central is considering the future of your cooperative. Like Arthur Companies, West Central has been around for generations and has successfully weathered the challenges of our industry. Arthur Companies would like the opportunity to be part of West Central’s next chapter – with a focus on helping our customers and communities grow by making decisions at the local level. That’s how we’ve operated since 1906.
As a family-owned company, we look at the future from a generational perspective, not simply what’s best for the next corporate earnings report. Arthur Companies’ customers have stuck with us for generations because of our commitment to doing it the right way every time. We earn trust by consistently doing what we say we will do. Working with West Central would be no different.
Earlier this year, we presented the West Central Ag Services board of directors with an offer to purchase West Central’s assets which would result in roughly $5 cash for every $1 in equity each cooperative member currently holds. We believe this offer is a superior proposal to the merger you are asked to consider in the upcoming meeting on November 7.
Even though we provided a superior proposal, we could not get an audience with the board or management. It’s clear management had a strong incentive to support the alternative proposal rather than entertain additional interest. The purpose of our outreach is not to debate the merits of the proposed merger with CHS. Rather we want to make all the facts available prior to the vote and ensure members are aware that management did not engage with qualified third parties looking to provide competitive alternatives.
We understand there’s a lot to consider for West Central's future. Arthur Companies would like to be part of the discussion, working together to build a future that is best for generations to come.
Please do not hesitate to call me anytime. My cell phone number is (701) 866-9175.
Sincerely,
James Burgum
CEO – Arthur Companies, Inc
WHAT
We are handshake people. Straight shooters – trust builders. Rather than work behind the scenes in boardrooms, we are introducing our offer directly to the co-op members of West Central Ag Services – the growers and owners who stand to benefit.
Every producer knows their bottom line. We believe an acquisition deal with Arthur Companies has the potential to deliver the strongest return on investment for the members of West Central without compromising quality and service.
Working together, we could not only return a strong yield for members in the short term, but Arthur Companies strives to help our customers prosper for generations by utilizing the latest technology, expanding our offerings, and providing only the highest quality products and services.
WHY
We’re going to visit with cooperative members and growers individually to communicate the strength of our offer, the potential upside for their bottom line, and what a partnership could like going forward.
Our goal is for members of West Central to have as much information as possible when they meet to vote on the future of their co-op on November 7.
HOW
WORKING WITH YOU
The Arthur Companies takes a generational view of our businesses and investments. That’s our heritage and what we do. West Central Ag Services has also been around for generations and is considering its future. The Arthur Companies would like to be part of securing your future for generations to come.
Helping invest in your next generation
A better deal for growers
Earlier this year, we presented the West Central Ag Services board of directors with an offer to purchase West Central’s assets which would result in roughly $5 cash for every $1 in equity each cooperative member currently holds. This offer is stronger than the merger deal you are being asked to consider in the upcoming meeting on November 7.
$5
Cash
$1
West
Central
Equity
A better deal today. Better service tomorrow.
The Deal
Arthur Companies submitted an unsolicited bid, and even though we provided a superior proposal, we could not get an audience with the board or management. It’s clear management had a strong incentive to support the alternative proposal rather than entertain additional interest. The purpose of our outreach is not to debate the merits of the proposed merger with CHS. Rather we want to make all the facts available prior to the vote and ensure members are aware that management did not engage with qualified third parties looking to provide competitive alternatives.
Competition Matters
Competition is always good for the seller – Arthur Companies has a compelling alternative that delivers certainty with a clear bottom line: more cash today and an alternative owner with unique attributes. As you consider the future of your operation’s balance sheet, it is important to note that CHS is struggling to put its equity management program back on the rails. It’s essentially an unfunded pension program – they have been issuing stock faster than they can pay it out. Arthur Companies provides a certain future with the strong customer service you've come to expect from West Central. Co-op members deserve to evaluate their full range of options.
Staying Local
Arthur Companies has a proven track record of expanding our business and finding ways to make our customers and ourselves more profitable. We do not take trust for granted. We do it the right way every time. We’re consistent where it counts. We help our customers and communities grow by making decisions at the local level. It’s how we’ve been able to maintain our loyal customer base for over a century.
Family Owned for Generations
The Arthur Companies
In 1906, J.A. & Jessamine Burgum founded Arthur Farmers Elevator, now The Arthur Companies, in Arthur, North Dakota. Back then, horse-drawn wagons would carry grain to the elevator and harvesting was slow.
116 years later acres are harvested in hours and the entire world is the market. Through it all The Arthur Companies have remained family-owned and operated. The Arthur Companies is now in its fourth generation of family leadership.
Today, the Arthur Companies are a diverse group of agribusinesses dedicated to the growth of our customers and communities. We combine modern technology with generations of customer service experience to create consistent, innovative approaches to elevate our business and help our customers succeed.
OUR VALUES
SERVICE
Consistency where it counts – our foundation was built
on our dedication to serving growers, team members,
and our communities. We seek to provide value in every
interaction we have with all of our stakeholders.
INTEGRITY
Do it the right way every time – it’s the best way to gain
respect and how we’ve been able to maintain our loyal
customer base for over a century. We treat others the way we would like to be treated.
TRUST
We do not take trust for granted; our team knows that we
must earn trust daily by striving for excellence
in all we do. We earn trust by consistently doing what we
say we will do.
PIONEERING
Trailblazing isn’t a culture we created; it’s something we
inherited and strive for in all aspects of our business. We
are not satisfied with the status quo and are committed
to creating new opportunities and higher levels of service.
EXCELLENCE
If it is worth doing, we do it right the first time and strive for excellence in all we do. We have an ownership mindset and take accountability in our words in actions.