Local co-ops forming new company

CELINA - Mercer Landmark and Sunrise Cooperatives officials have agreed to form a new company that will manage and operate both existing feed businesses as a single entity.

News of the partnership was announced Monday on Mercer Landmark's website.

"We are extremely excited to announce the uniting of two regional premier feed suppliers into a single operating company, allowing us to better service and support the producers in Ohio and Indiana," the release states.

The new company, to be named at a later date, would be jointly owned by Mercer Landmark and Sunrise Cooperative. Mercer Landmark would be the managing partner responsible for operations and administration, according to the release.

Mercer Landmark's MPS Feed facility in St. Henry would not be included in this new company and would continue to operate separately, the release states.

"However, with Mercer Landmark being managing partner of both companies, this will significantly strengthen our purchasing position for ingredients and grain, providing benefits for all our customers," the release states.

Calls left with Mercer Landmark seeking additional information went unreturned by press time.

According to the release, the new partnership would provide for,

• existing 400,000 tons of annual feed manufacturing volume and 350,0000 tons of additional capacity.

• combined manufacturing, including MPS, of approximately a million tons.

• a leveraging of the best capital assets from both parent companies while limiting the need for separate, overlapping capital investments to upgrade and expand facilities and equipment.

• a realization of $1 million in synergies derived from operational efficiencies, centralized procurement and expense control.