PENDLETON, OR--(Marketwired - Dec 1, 2016) - Pendleton Grain Growers (PGG), a member-owned agricultural marketing and supply cooperative serving the farming communities of Eastern Oregon and Eastern Washington, has sold its propane division to Morrow County Grain Growers (MCGG). The deal, effective today, follows through on the board of directors' commitment to secure the best possible outcome for members, employees and the wider agricultural community.
Financial terms of the sale have not been disclosed. Upon the completion of the sale, the Co-op will return to financial stability, enabling the Board to fully restore the employee benefits program and continue to stay focused on returning the best possible value to the membership.
"The PGG board of directors has been seeking a local buyer for the cooperative's propane assets that would serve as a strong partner for our agricultural community," said Tim Hawkins, chairman of the co-op board. "We believe that MCGG, a local business that is well known to our members and other customers, is the right partner."
John Ripple, manager of MCGG, led the purchaser's interests. The agreement covers the sale of all PGG assets that are exclusively used in the propane business, including vehicles, inventory and related information. MCGG is also expected to hire current PGG employees involved in the propane business.
"The PGG assets will add meaningfully to the scale of our propane business," said Ripple, "which will better position us to take advantage of growth opportunities in a sector that can provide a good return on our invested dollars. We look forward to strengthening the energy services we provide to our members."
Existing PGG Propane customers should expect a seamless transition as they become customers of MCGG. MCGG expects to maintain the high quality of service it provides to its existing propane customers. MCGG looks forward to servicing the PGG propane customers.
About Morrow County Grain Growers
Established in 1930, Morrow County Grain Growers is a 600-member cooperative serving north central Oregon and south central Washington. The co-op's diversified business interests include grain, agronomy and fuel operations, as well as auto parts and farm equipment sales and service.
About Pendleton Grain Growers
Founded in 1929, Pendleton Grain Growers is a member-owned agricultural marketing and supply cooperative that has served the farming communities of Eastern Oregon and Eastern Washington.