REGINA, June 2, 2015 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGT) ("AGT") is pleased to announce the completion of the purchase of the assets of West Central Road & Rail Ltd. by AGT's wholly owned subsidiary, Alliance Pulse Processors Inc. The acquisition includes five bulk loading sites located in Saskatchewan which were purchased for a purchase price of approximately $22 million.
"We are pleased with our acquisition of these assets and we are eager to begin the integration process to bring these assets into our bulk handling system. Facilities in our legacy business in Canada have been capacity-constrained, with high levels of production and customer demand resulting in our need to use some of our value-added processing infrastructure to do bulk loading programs. Transportation and loading assets are important to our legacy business, especially in the current supply and production environment for agri-food markets globally. Significant production levels are available in origins like Canada and the U.S., mirrored by demand and supply requirements in markets like Turkey and India. With our relationship with producers of both pulses and durum wheat, we have the ability to match origination and production to demand and supply requirements, and these assets allow us to use available and efficient modes of transportation to create smooth product flows from farm to customer," said Mr. Murad Al-Katib, President and CEO of AGT.
"The tuck-in acquisition of these assets is a key part of the growth plan to support both our pulses business in Canada and Turkey as well as our durum wheat and pasta business. AGT's ability to originate and load bulk quantities of lentils, peas, durum wheat and other specialty crops and grains for shipment has been a growing part of our business, and we need to boost capacity there while returning value-added capacity back to our facilities in Canada that are currently doing bulk load lentil business. With the estimated high production in Canada for pulses and durum wheat, we view this turnkey acquisition as providing augmented capacity, particularly in peak shipping windows. We expect this acquisition to benefit AGT in the upcoming fall harvest in Canada," added Mr. Al-Katib.
AGT Food and Ingredients Inc. Profile
AGT is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands, Spain, Switzerland and India and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.
West Central Road & Rail Ltd. Profile
Prior to the closing of the transaction, West Central Road & Rail Ltd was a transloader based in Eston, Saskatchewan, operating five facilities capable of receiving grains, pulses, oilseeds and special crops locally, which are transloaded into railcars for national and international shipments. Through its wholly-owned subsidiary, Goals Marketing Inc., the group was also engaged in purchasing grains, pulses, oilseeds and special crops directly from producers.
Certain statements in this press release are forward-looking statements. In particular, this press release contains forward-looking statements with respect to, among other things, production in Canada and the expected benefits of the referenced transactions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGT 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 AGT (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 Annual Information Form of AGT dated March 27, 2015 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT 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. AGT 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: Investor Relations: Omer Al-Katib, (306) 244-1318, [email protected]