West Central Ag Services members this week voted to merge with CHS in a $225 million deal.

The Ulen, Minn.-based ag cooperative leadership had backed the deal, sweetened after North Dakota-based Arthur Cos. made a competing offer.

"The West Central Ag Services board is pleased that our members agreed that CHS is the best fit for our cooperative. Joining CHS connects our farmer-members in northwest Minnesota and eastern North Dakota to the global marketplace efficiently," Duane Brendemuhl, chair of the cooperative's board, said in a statement. "By becoming part of the CHS supply chain, we're providing strength and long-term value for owners and the cooperative system."

Arthur had offered $250 million, but West Central's leadership said it would not offer as much long-term value to its members.

CHS initially announced a $200 million deal to acquire West Central Ag Services in May. It increased the offer after Arthur made a case for its offer earlier this month.

After meeting with both CHS and Arthur management, West Central's board concluded a merger with CHS, while less money upfront, was a "superior proposal" for the long-term interests of farmer-members.

West Central operates primarily in the Red River Valley. The cooperative had $767 million in revenue last year and turned a $41 million profit.

CHS, based in Inver Grove Heights, is the nation's largest agricultural cooperative and a Fortune 500 company with $1.1 billion in net income for the fiscal year that ended Aug. 31, down from $1.9 billion the year before. Annual revenue was $39.3 billion.

The West Central merger is expected to close in the coming weeks, a news release said.

"Together, we will directly connect more producers to the global ag supply chain, providing broad market access for all our farmer-owners," Rick Dusek, CHS executive vice president of ag retail, distribution and transportation, said in a statement.

West Central will join CHS as an ag retail business unit called CHS West Central and stay based in Ulen.

Arthur CEO James Burgum said the company's goal was for growers to have as much information as possible before the CHS merger vote, including its proposal.

"We achieved this goal, and we're grateful that our efforts also created significant value for patrons through the power of competition," said Burgum, the nephew of outgoing North Dakota Gov. Doug Burgum. "The Arthur Companies hopes we've raised awareness on the full range of options available to maximize growers' bottom line when cooperatives are considering their future."