SYMBOL: TSX: AGT
REGINA, Dec. 15 /CNW/ - Alliance Grain Traders (TSX: AGT) ("AGTI") is pleased to announce that it has entered into binding agreements to acquire all of the assets of Finora Inc. ("Finora"). The assets to be acquired include four processing plants in three locations - two plants at Wilkie, Saskatchewan (approximately 175 km northwest of Saskatoon, Saskatchewan), a plant at Assiniboia, Saskatchewan (approximately 100 km southwest of Moose Jaw, Saskatchewan) and a plant at Gibbons, Alberta (approximately 40 km north of Edmonton, Alberta). AGTI will acquire the plants, approximately 20,000 MT of bulk product storage and certain land and equipment. The purchase price for the acquisition is US$8.9 million, payable in cash.
Completion of the transaction is subject to a number of conditions, including certain due diligence and other customary closing conditions. The transaction is currently scheduled to close on or about December 31, 2009. All of the processing plant staff and plant management team will remain with AGTI after the acquisition.
"Finora has great assets that complement our current processing locations and drawing areas. It immediately provides advantages to our bulk shipping program through the ability to capitalize on excellent rail service with CP Rail at Wilkie and Assiniboia and CN Rail at Gibbons, Alberta. The ability to access container shipping from Edmonton adds another logistical advantage. The assets add capacity to react to the growing volumes of our core crops - lentils, peas, chickpeas and canary seeds, available to our Western Canadian business. This is another strategic "tuck-in" acquisition for us that immediately expands our operations and delivers value and growth opportunities for our shareholders, producers and customers," commented Murad Al-Katib, President and CEO of Alliance Grain Traders Inc.
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGTI) is a pulse processor and exporter engaged in the business of value-added processing (cleaning, splitting, sorting and bagging) of pulses and specialty crops, for export and domestic markets. Through its processing facilities located in some of the best pulse growing regions in Canada, the U.S., Turkey and Australia, AGTI handles a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed. Through its subsidiary in Turkey, the Arbel Group, AGTI also produces Arbella Pasta, rice, and milled wheat products, such as bulgur and semolina.
Finora Inc. Profile
Finora Inc. is a Canadian corporation engaged in the purchasing, processing and sale of specialty agricultural products primarily produced in Western Canada and exported worldwide. The company was established in 1990.
Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGTI at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGTI (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations, as well as those factors referred to in the section entitled "Risk Factors" in the prospectus of AGTI's predecessor, Alliance Grain Traders Income Fund, dated July 16, 2009 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGTI has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. AGTI expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE AGT Food and Ingredients Inc.
For further information: For further information: Investor Relations, Omer Al-Katib, (306) 244-1318, firstname.lastname@example.org