What was more than likely an exciting time for Select Sires employees might have been a bit more of a somber occasion for Accelerated Genetics employees June 13 when it was announced that the boards of directors of the two artificial-insemination cooperatives had reached a decision to join forces.

Under the planned agreement, which will become effective on June 30 if Accelerated Genetics delegates vote in favor of the sale, Select Sires will acquire the assets of Accelerated Genetics, joining forces of the employees and independent sales representatives in each of their geographical member organizations.

Select Sires, Inc., with headquarters in Plain City, Ohio, has about 1,200 employees worldwide, while Accelerated Genetics, headquartered in Baraboo, has 250 employees plus another 180 independent contractors who work for the organization.

Shirley Kaltenbach, Select Sires director of communications, said the decision coincides with an already collaborative business relationship that began in 2001, where the two cooperatives share ownership of World Wide Sires, Ltd. World Wide Sires is the international marketing arm for both co-ops in Europe, Africa, Asia, the Middle East and Oceania.

Kaltenbach said although some people knew an acquisition might be in the works,there were a lot of people who were surprised by the June 13 announcement.

Over the past few weeks Ive gotten to know quite a few of the (Accelerated Genetics) employees, and they are good people, Kaltenbach said.It was a struggle for them the day they were told what was going on. These are people who might have worked 30 or 40 years and have been totally loyal to Accelerated Genetics.

While its exciting for us (at Select Sires), we needed to take a step back and think about those people and the tough day they were going to have learning that they might be at risk of being terminated or they were going to work with somebody they have competed with for years. Theyre great people and they have a genuine love for this industry.

Angie Lindloff, Accelerated Genetics vice president of marketing and communications, said it was no secret that Accelerated had been struggling financially in recent years.

From our standpoint we needed help, she said. We needed to partner with someone in the industry to make sure our customers will have the products and services they need. Sometimes in order to move forward, you have to join forces and utilize your resources together.

Kaltenbach and Lindloff said they didnt know how many employees might be displaced by the merger.

Lindloff said she hope(s) a lot of (Accelerated Genetics) team members will be offered positions moving forward.

Theyre trying to do the best for the majority of our employees, she said, to either repurpose them or find them a position.

Kaltenbach said Select Sires has nine member organizations including East Central Select Sires in Waupun and NorthStar Cooperative in Lansing, Mich., that together serve Wisconsin and each member organization will retain the number of Accelerated Genetics employees they need to serve their customers.

Short term, everything will stay the same, and (Accelerated Genetics) will operate as they normally do, Kaltenbach said. Itll probably remain like that until we get a long-term strategy in place. It has to evolve. Right now were trying to transition everything.

I can tell you that each person is valued and important and the goal is to make sound business decisions and take on as many as we can.

Lindloff said the acquisition has been in the works for several months, but only a few employees from each of the co-ops knew of the negotiations.

Its all been very confidential, she said. You have to protect the business and employees and sales representatives from their competitors. You have to keep mergers and acquisitions very quiet to do it correctly.

Lindloff said merging the two companies will give the larger cooperative more genetic strength and a bigger sire offering for our customers.

All of our customers will have access to all the good stuff offered by both companies, including the animal product line that both co-ops sell, she said.

Accelerated Genetics delegates are scheduled to vote on the proposed sale on June 22. If the vote is favorable, the deal will close on June 30.

Accelerated Genetics was formed as Vernon County Breeders in 1941. The cooperative consolidated with Trempealeau County Breeders Cooperative in 1947 and Tri-State Breeders was formed. The name was changed to Accelerated Genetics in January 1995.

The cooperative is led by a 10-member board of directors with dairy and beef farm members in Wisconsin, Minnesota, Iowa and Illinois.

Select Sires nine member cooperatives cover the U.S. The co-op was formed in 1965 when four farmer-owned co-ops joined forces to offer a wider variety of genetic options to their members and improve efficiencies. Select Sires is the largest artificial insemination organization in North America.

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Select Sires poised to acquire Accelerated Genetics - Eau Claire Country Today