Legumex Walker Sells Stake in Blue Hills Processing Plant
- Transaction reflects progress in achieving strategic objectives -
WINNIPEG, May 1, 2012 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today announced that it has sold its 20 percent stake in Blue Hills Processors (2003) Ltd. ("BHPL") to BHPL's majority owner for total gross proceeds of $1.8 million. The sale represents a significant milestone in the Company's initiative to optimize its wholly-owned processing capacity following the combination of the Roy Legumex Group of Companies and Walker Seeds Ltd. to form Legumex Walker in July, 2011.
"Our relationship with Blue Hills has served us well for a number of years as we've been both a substantial minority investor and - at times - its largest customer," said Anthony Kulbacki, Legumex Walker's chief financial officer. "Because of our progress in optimizing our own processing capabilities, we will be better positioned to meet our processing needs through internal resources. As a result, it's the right time to monetize our investment in Blue Hills and redeploy the capital elsewhere."
The Company continues to focus on profitable growth in sourcing, processing and sales. In addition to the acquisitions of St. Hilaire Seed Company and assets of Anderson Seed Company earlier this year, the Company plans to expand its capacity and capabilities at its processing facilities in Regina and Saskatoon. It is also exploring international sourcing and processing options that diversify production risks and provide more cost-effective logistics for meeting various customer needs. The commencement of bean processing in China earlier this year was an important first step in this regard.
The Company's original investment of approximately $440,000 was made after the completion of construction of BHPL in 2003 through its predecessor company, Walker Seeds Ltd.
About Legumex Walker Inc.
Legumex Walker is a growth-oriented processor and merchandiser of pulses (lentils, peas, beans and chickpeas), other special crops and canola products. The Company is one of the largest processors of pulses and other special crops in Canada with 11 processing facilities strategically located in key growing regions in the Canadian Prairie Provinces, the American Midwest, and China, a global sales, logistics, and distribution platform and access to multimodal transportation capabilities. In addition the Company has an 85 percent interest in Pacific Coast Canola, LLC, a company that is constructing a canola oilseed processing facility in Washington State.
This press release contains "forward-looking information" within the meaning of Canadian securities laws, which may include, but are not limited to internal processing capacity, third-party processing requirements, capacity expansion, international sourcing and deployment of capital. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including those set out in Legumex Walker's Management's Discussion and Analysis for the period ended December 31, 2011, which is available on SEDAR at www.sedar.com. The Company does not undertake to update forward-looking statements or forward-looking information except as required bylaw.For further information:
INVESTOR & MEDIA RELATIONS
Manager of Investor Relations - Legumex Walker Inc.
(416) 815-0700 ext. 257