Cox Rural merge with fellow independent, Delta Agribusiness
We are very pleased to announce that Cox Rural have agreed to merge their business with fellow independent Delta Agribusiness (Delta Ag), effective July 1, 2022.
The merging of Delta Ag and Cox Rural creates a much larger combined agribusiness, delivering an increase in business scale and financial capacity, as well as, improved geographic and activity diversity combining a marriage of culturally aligned people.
Lachy Cox has through this transaction maintained a large investment in the business by taking a substantial equity ownership position in the combined business and will become a highly valued and important shareholder in the Delta Ag group. Lachy and his management team will continue to manage Cox Rural in the same way they currently do, and the same friendly faces will continue in the branch network.
Importantly, both Cox Rural and Delta Ag are privately owned and independent businesses. We see this as very important as it aligns with the way we operate our businesses, and our desire to ensure that the much larger listed and foreign owned corporates have strong and capable competitors that are investing in and competing in regional Australia.
Delta Ag have a very strong footprint and presence in NSW/Sthn Qld, Vic and Western Australian and have a continued strategic desire to broaden their geographic and seasonal diversity into other regions and markets that makes sense. 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.
Lachy comments “It has always been very important to the Cox Rural Group to remain strongly independent, and we did not want to change that, so the decision was made to find a suitable partner to merge with, a company with a very well aligned culture and care for its team of people and customers alike, and with the resources and functionality to strengthen our business. Delta was the obvious choice and ticked all the boxes. This merger will provide increased efficiencies, enhanced buying power, and provide the resources and one team approach required to grow and innovate. It does this without compromising our independence and autonomy, not only a benefit to Cox Rural and its team, but most importantly is strong and highly valued customers.”
“Delta Agribusiness is a company I see as the ideal fit to take our business to its next stage of growth. Additionally, the Delta Ag shareholder model allows our Cox Rural team to invest in the merged business, as some had done in Cox Rural, however, the opportunities were limited due to our company structure. 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. 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”
About Delta Agribusiness
Originating in Southern NSW in 2006, Delta Ag has grown strongly over the past 16 years to become a major and highly respected independent supplier of farm inputs, agronomy and advisory services, technology solutions, as well as grain marketing, livestock and property, and seasonal finance solutions to its customers across Australia.
Delta pre-merger operates out of 53 company owned locations and has 40 independent wholesale customers across WA, through its business there, David Grays Aglink.
Delta Ag is privately owned by 110 shareholders, most of whom work in the business, and it employs around 350 people. The Delta business is built on a foundation of providing its clients with independent and experienced agronomy and advisory services with an overarching focus on adding tangible value to its client’s businesses. Delta Ag is passionate about sustainable agriculture at all levels, and is highly committed to investing in the rural communities that it operates in.
To understand the company more thoroughly, we invite you to visit the website www.deltaag.com.au
Gerard Hines, Managing Director of Delta Ag explains the relationship with Cox Rural, “Our Company is delighted to welcome Lachy and Kristi and the entire Cox Rural team into our business. Delta Ag is built around the best people, innovative client offerings, and long-term relationships and partnerships with our clients and suppliers, which is completely aligned with the values and beliefs of Cox Rural.”
Speaking about the merger, Gerard added, “It’s important to understand that Lachy has not sold out of his businesses, quite the contrary in fact. Lachy has via this transaction reinvested a large proportion of the transaction consideration into the expanded business and maintains his senior management and leadership position to ensure continuity 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.
It is important to note that Lachy and his senior team will continue to operate the business as is, with retained autonomy and management initiative. 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.
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.
As a Cox Rural/Delta client it is business as usual. Clients can expect to continue to receive the same trading models, quality advice, and products and services along with maintaining the heavy community involvement that currently exists. Importantly, clients will be able to continue to trade normally without interruption. All existing Cox Rural customers debtor accounts will remain as is, with existing commercial agreements retained.
The below image demonstrates the combined regional diversity created by the merger. The merger will also give you some increased options for other segments of your business. For example, Delta Ag has a highly successful Precision Ag offering, and is leading the way on this front across major parts of its footprint. Additionally, Delta’s seasonal finance products will be available to Cox Rural customers via this merger.
We are very excited by this merger opportunity and are confident that you will see the benefits to your business and your community over time. Cox Rural and Delta Agribusiness share many of the same views and attitudes to the way we do business, and we guarantee that any changes you see are positive and introduced with respect.