ADM Sells Kansas Facilities to Scoular

Scoular Acquiring 4 Grain Elevators From ADM in Northwest Kansas

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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An ADM grain elevator in Oakley, Kansas, is among four grain facilities in northwestern Kansas that ADM is selling to competitor Scoular this month. The companies said employees at the four grain elevators will be offered positions at Scoular. (Photo courtesy of Scoular)

OMAHA (DTN) -- Scoular on Thursday announced the Omaha-based grain-handling company has signed an agreement to acquire four grain facilities in northwest Kansas from competitor ADM.

The purchase will "more than double its handling and storage capacity for area farmers" in that area of Kansas, Scoular stated. The four facilities are in Brewster, Goodland, Monument and Oakley. The sale is expected to close sometime this month and the four facilities will be operational at fall harvest. The facilities handle corn, wheat and grain sorghum.

Scoular has been increasing its presence in northwestern Kansas since 2007 and already operates a grain elevator in Goodland. Scoular also owns a facility about five miles west of Goodland that has capacity for about 5.5 million bushels. The company took over that facility last year.

With ADM turning over four elevators to Scoular in about a 60-mile radius, the deal also likely takes away some competition for grain for farmers in that area.

With the latest purchase, Scoular will own 11 facilities in that part of the state.

"We are excited to expand our presence in northwestern Kansas, create value for farmers and invest in our value chain network providing highest quality and dependable supply to our customers," said Derek Spears, Scoular's regional manager.

ADM and Scoular stated all employees at the four grain elevators will be offered positions at Scoular. "The companies are working together to ensure a seamless transition for customers and farmers in the area. The deal is expected to close in the coming days," ADM stated to DTN.

Scoular has been investing heavily in western Kansas over the past year. In August, Scoular also announced it had made substantial investments to its grain facilities in Coolidge -- about 110 miles south of Goodland -- as well as Pratt, about 200 miles east of Coolidge. Investments at both facilities increased storage capacity and increased grain unloading speed.

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Chris Clayton