Alceco and FCA to conduct unification study

The boards of directors of First Cooperative Association, of Cherokee, and Alceco, of Albert City, have signed a letter of intent (LOI) to conduct a unification study between the two cooperatives.

According to a joint news release, the boards of directors of both cooperatives believe now is the right time to conduct the study due to marketplace dynamics that are “changing dramatically.” The release stated each cooperative is “financially strong” and can approach the opportunity from “a position of strength while ensuring local ownership and control.”

By signing the LOI, which is a non-binding agreement, the cooperatives commit only to complete the initial due diligence phase. The leaders from the two organizations will thoroughly evaluate the opportunities that may exist by potentially unifying the two cooperatives.

Once the due diligence process is completed by the boards of directors and management teams, the results of the study will be shared with the patrons.

FCA operates 20 locations throughout northwest Iowa, while Alceco has 17 including locations in Hartley and Royal (Ag Partners, LLC).