- Acquisition of Canada's Largest Sunflower Processer/Marketer
Significantly Strengthens Position in Bakery Ingredient Market -
WINNIPEG, Aug. 27, 2012 /CNW/ - Legumex Walker Inc. (TSX: LWP) today
announced it has entered into a letter of intent with Keystone Grain
Ltd. ("Keystone"), a leading Manitoba-based processor and marketer of
sunflowers, flax, specialty crops and organic commodities, under which
Legumex Walker will purchase all of the outstanding shares of
Keystone. Pending the completion of the acquisition, the two companies
have agreed to coordinate the sourcing of feedstock and selling of
products. Keystone is Canada's largest processor and marketer of
sunflowers and sunflower products.
"Keystone is a highly strategic addition to our U.S.-based sunflower
processing assets and significantly enhances our ability to service the
growing demand for sunflower and flax products in the bakery
ingredients market," said Joel Horn, President and Chief Executive
Officer, Legumex Walker. "Available processing capacity at our
existing sunflower facilities will allow us to capitalize on meaningful
growth opportunities inherent in the Keystone business. In addition,
Keystone's business will further diversify our product offerings
through entry into the retail bird food market, as well as provide
cross-selling opportunities for our respective merchandising teams.
Importantly, we expect the transaction to be accretive to 2013
earnings, exclusive of any potential synergies that may be realized."
"Joining forces with Legumex Walker will allow us to take advantage of
currently available growth opportunities we could not pursue on our
own," said Don Falk, President, Keystone Grain Ltd. "The addition of
Keystone to Legumex Walker will create one of the largest suppliers of
sunflower and flax products in North America with bakery ingredient
sourcing and processing on both sides of the Canada/U.S. border - a
significant strategic advantage. We have tremendous respect for the
people at Legumex Walker and look forward to becoming part their
special crops family."
Keystone's assets include a sunflower processing facility and a flax
processing facility in Winkler, Manitoba and a bird food processing
facility in Winnipeg, Manitoba with a combined capacity of 62,000
metric tonnes annually. Keystone processes and markets a variety of
food-grade products, primarily focusing on sunflower and flax products,
including bakery sunflower kernels and confectionary sunflower kernels
and several varieties of both milled and non-milled flax. Keystone
also processes and markets custom private label bird food products and
retail wild bird food products, and packs wild bird food products under
the Emerald Farms label for the retail market, including several large
North American big box retailers.
Legumex Walker's acquisition of Keystone is subject to further
satisfactory due diligence, definitive documentation and customary
closing conditions. Until all the closing conditions are satisfied or
waived, there can be no assurances that this transaction will be
completed. If all closing conditions are satisfied, closing is expected
to occur in September 2012.
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 statements relating to the proposed acquisition of Keystone,
the Company's plans for this acquisition, its expectations for the
performance of this acquisition, the impact of this acquisition on the
overall performance of the Company and on financial results for future
periods. Such forward-looking information reflects the
Company's view with respect to future events and is subject to risks,
uncertainties and assumptions, including risks associated with the
integration of the operations of with the Company's current operations
and those set out in the Annual Information Form of Legumex Walker for
the year ended December 31, 2011 and in the Company's Management's
Discussion and Analysis for the period ended June 30, 2012, which are
available on SEDAR at www.sedar.com and which should be reviewed in conjunction with this press release
available at www.sedar.com. The Company does not undertake to update forward-looking statements or
forward-looking information, except as required by law.
SOURCE: Legumex Walker Inc.
For further information:
INVESTOR & MEDIA RELATIONS
Manager of Investor Relations - Legumex Walker Inc.
(416) 815-0700 ext. 257