Cox Rural merges with Delta Agribusiness

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Merger deal sees Lachy Cox take stake in Delta, with SA company to enjoy a wider resource base

Cox Rural merges with Delta Agribusiness
Cox Rural has outlets in Naracoorte, Keith, Tintinara, Coonalpyn, Clare and Jamestown, South Australia.

 

South Australian rural merchandise company Cox Rural will merge with New South Wales-based Delta Agribusiness from July 1, the companies have announced.

The companies said the merger would deliver an increase in business scale and financial capacity, with both businesses to remain privately owned and independent.

Cox Rural principal Lachy Cox has taken a "substantial equity ownership position" in the combined business and will continue to manage Cox Rural’s branch network with the existing management team. 

With 53 company owned locations across NSW, Queensland and Victoria, as well as 40 independent wholesale customers across WA, through subsidiary business David Grays Aglink, Delta Ag says the deal will broaden its geographic and seasonal diversity, it says.

"This creates a more balanced overall agribusiness to deliver enhanced long-term diversity and sustainability, with the merger with Cox Rural adding a great geographical footprint into SA," the company says. 

"The merger will ensure that the management, staff, locations, and the products and services we provide will remain just as they have been, but with the added strength of a stronger resource base to meet our customer’s needs."

Delta Ag managing director Gerard Hines welcomed Lachy and the rest of the Cox Rural team to the company, noting that Lachy would be keeping his senior management and leadership position across the business.

"This means Lachy retains a high level of "skin in the game" and maintains an unfettered desire to ensure Cox Rural continues its proud tradition in the SA communities that it services," he says.

"The combined commercial and agronomic experience will greatly strengthen the overall value proposition to clients, as both businesses will bring new ideas and synergies to the table for the benefit of our clients.

"The combined group will have 66 agronomist/farm consultants, and an enhanced commitment to research and development trial work," Hines adds.

Lachy says Delta was the obvious choice in finding a suitable partner to merge with – saying it has "a very well-aligned culture and care for its team of people and customers alike."

"This merger will provide increased efficiencies, enhanced buying power, and provide the resources and one team approach required to grow and innovate," he says.

"It does this without compromising our independence and autonomy, not only a benefit to Cox Rural and its team, but most importantly its strong and highly valued customers." 

"This is a great opportunity for our highly valued team to be able to become a shareholder and share in the success of the overall business," he adds.

"The increased scale of the combined businesses provides further career opportunities for our terrific team, and we believe will only build on the positive outcomes that we strive to deliver to our clients" 

The companies added that it would be business as usual until the merger was finalised, with clients to receive the same trading models, and able to trade normally without interruption.

All existing Cox Rural customers debtor accounts will remain as is, with existing commercial agreements retained, they added, with Delta’s seasonal finance products to be available to Cox Rural customers following the merger.

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