Frequently Asked Questions (FAQ) for Members

Q:        What have the boards decided?

A:        The Boards of Directors of Belgrade and Paynesville met and voted to sign a Definitive Agreement and Plan of Merger to move forward with a member vote to combine the two cooperatives. 

Q:        What is due diligence and what are the findings?

A:        The due diligence process identifies opportunities and benefits for both members and employees as well as any potential risks to mitigate during the merger process. Employee teams from both cooperatives met over the past several weeks to discuss due diligence for this potential merger. They have identified opportunities to become more efficient and improve the way we support you, our members. 

Q:        Are both cooperatives financially sound?

A:        Yes, both companies are financially sound.  Both companies have also been making substantial investments in recent years back into the locations and equipment that are used to service their members. Both companies have strong balance sheets.

Q:        How many board members would the combined cooperative have? 

A:        The board will consist of 9 board members, 6 from Belgrade and 3 from Paynesville based on equity split that each legacy coop brings to the new coop. Currently there are 12 board members and over time, the board will get reduced to 7 total members. 

Q:        If the merger is approved through the member vote, who will be the new General Manager?

A:        Pending a positive member vote Eric Paulson, current GM of Belgrade, will be the General Manager of the combined organization. Paul Evans, current GM of Paynesville, will remain on as a strategic advisor of the combined entity as a key employee.

Q:        If the merger is approved through member vote, what will the name be?

A:        The merged cooperative will be named United Country Co-op.

Q:        If the merger is approved through the member vote, where will the headquarters of the new cooperative be located?

A:        If the merger is approved through member vote, the combined cooperative will maintain administrative headquarters at Belgrade, however, no locations will be closed due to the unification, and all will continue to service members.

Q:        If the merger is approved, how will equity and patronage be handled? 

A:        If the merger is approved, the cooperative will have a fair and equitable approach to patronage and equity distributions. All current allocated equity will honored dollar for dollar and combined in the new cooperative. Existing and future equity allocations and redemptions will remain at the discretion of the Board of Directors.

Q:        How will employees be impacted?

A:        Employees are our most important asset and with the current situation we will need all our employees to contribute to the organization. Roles may be different, but opportunities for employees will be greater. Decisions on specific roles and benefits will be made after a positive member vote. 

Q:        Will member services change?

A:        If the merger is approved by the membership, the cooperative will work to maintain and enhance services for members and offer products to support our patrons in this competitive environment as we do today. With the combined footprint, we can leverage locations, assets, and employees to better service the membership.

Q:        Will the merger reduce competition in the marketplace?

A:        There is significant competition in the marketplace today and there will be in the future. As a cooperative, we are owned by members and operate for the benefit of members. This proposed merger will not change that.

Q:        What is required for the vote to pass?

A:        The Paynesville vote will require a 2/3 majority of members casting ballots to vote yes to approve the merger, due to their coop structure. The Belgrade vote will require a simple majority (over 50%) to vote yes to approve the merger.

Q:        What happens after the voting period ends?

A:        Should both Paynesville and Belgrade members vote to approve the merger, the target effective date would be April 1, 2026. Until then, Paynesville and Belgrade must continue to operate as separate cooperatives.

Q:        When and where are member meetings? (Members can attend any of the following)

A:        Informational meeting 1: July 29^th 9am @ Padua Pub, Sauk Centre

Informational meeting 2: July 29^th 1pm @ American Legion, Paynesville

Informational meeting 3: July 30^th 9am @ True-North Café, Melrose

Q:        Will voting be anonymous?

A:        Yes, only the auditor who is counting votes will know who voted yes or no.

Q:        What happens if one coop votes no?

A:        If one coop votes no and another votes yes, there can be another vote for the coop whose vote did not pass. The coop whose vote did pass will stand for 180 days. Before that 180 days, the vote that did not pass will need to be voted on again. 

Please contact your board members with any additional questions or concerns.