Following the sale, PGG said it 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.”
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, which will better position us to take advantage of growth opportunities in a sector that can provide a good return on our invested dollars,” said John Ripple, manager of MCGG. “We look forward to strengthening the energy services we provide to our members.”
In June, PGG sold its grain assets to United Grain Corp., Vancouver, Washington, U.S. The sale followed PGG’s announcement in October 2015 that it would look to divest the grain business.
Established in 1930, MCGG 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.