Omaha-based Farm Credit Services of America is being bought in a $1.4 BILLION deal by Rabobank (pronounced RAB-oh-bank), a Dutch-based multinational finance company. FCS America is one of the largest agricultural lenders serving Iowa, Nebraska, South Dakota and Wyoming. FCS America senior vice president Michelle Maves says the transaction is intended to provide America’s farmers and ranchers with greater agricultural expertise and lending services than is now available to them. FCS America had assets of $7.8 BILLION. Under the deal, Rabobank will acquire all of the shares of FCS America from its nearly 51,000 stockholders for a total cash purchase price of $600 million. Maves says the transition should be seamless for farmers and ranchers.Over the long term, Maves says the agreement will better position the company to meet the changing needs of customers and agricultural producers and to provide better service and more choice in the financial products and services they need to succeed. She says “We believe this transaction is good for our customers, good for agriculture and good for rural America.” The agreement lets FCS America’s current board nominate eight of its existing directors to fill four seats on the initial eleven-member board of the new entity. A news release says the acquisition of FCS America will enhance Rabobank’s ability to offer a “comprehensive portfolio of loan products, powerful technology platforms for loan delivery and talented leadership.
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