Alabama Farmer's Cooperative

A 65-year-old cooperative supplying a diverse array of agricultural products and related services to farmers in Alabama and Georgia. AFC’s businesses include Grower Services, Bonnie Plant Farm and Anderson’s Peanuts as well as retail stores serving agricultural communities.

Engagement Process and Outcomes

The Situation – AFC saw an opportunity to increase its returns on its Grower Services business (fertilizer, crop protection and seed products) by combining those assets with a larger entity that could purchase these commodities at a lower cost. Agriliance, one of the largest agricultural cooperatives in the U.S., was looking for an opportunity to expand its crop protection and fertilizer sales in the Southeast.

Nature of the Assignment – Brookwood developed the economic structure of the joint venture, determined a valuation methodology for the contributed assets and thus determined the ownership of the venture. Each party used Brookwood’s analysis to obtain board of director approval. Brookwood assisted in negotiating the principal joint venture terms on behalf of Alabama Farmers.

Excellent Result – The transaction was a significant success for our client – increasing the earnings derived from the contributed assets and decreasing our client’s investment in the project.