FORT SASKATCHEWAN, AB, Feb. 11, 2019 /CNW/ - Providence Grain Group Inc. (PGG) is pleased to announce that it has completed the sale of a 51% interest in Columbia Containers Ltd. (CCL, or the Company) to Timber Investments Ltd. (Timber), with PGG retaining the remaining 49% ownership interest. Other terms of the private transaction were not disclosed.
CCL, which operates an agri products container transloading facility on the south shore of Burrard Inlet in Vancouver, British Columbia, has recently completed a major capital upgrade which will result in a substantial capacity increase to 1.5 million tonnes of annual throughput and includes the ability to handle unit trains more efficiently. CCL also provides freight forwarding services to PGG and other grain shippers through its wholly owned subsidiary, CWest Solutions Inc.
The sale of its 51% interest in CCL enables PGG to recapitalize its balance sheet, reduce its cost structure and position it to pursue its core grain merchandising business growth initiatives. PGG expects the investment by Timber, which has interests in two other west coast logistics operations, to benefit CCL through operating synergies realized in storage, transloading and shipping.
Ernst & Young Orenda Corporate Finance Inc. (EY) and Miller Thomson LLP provided financial and legal advice to PGG in connection with the divestiture.
ABOUT COLUMBIA CONTAINERS LTD.
Strategically located on over 14 acres of land on Port Metro Vancouver's South Shore, Columbia Containers Ltd. is Canada's largest grain container transloading facility. With the completion of a recent expansion, CCL has two separate loading systems with a total capacity exceeding 1.5 million tonnes, the ability to receive and unload unit trains on site, and over 10,000 tonnes of grain storage. The company also has a fully functional EDI supported container depot capable of container storage, preparation, and repairs.
CCL has built its business on adhering to the most demanding quality control standards, and exceeding client expectations. One of CCL's core markets is the Japanese malt market, which has some of the most meticulous standards and demanding timelines in the industry -- expectations the Company aims to exceed for all their customers' shipments.
ABOUT TIMBER INVESTMENTS
Timber Investments Ltd. is a privately-owned investment company located in Vernon, British Columbia. In addition to its investments in logistics businesses, Timber has a number of other investments, including in the real estate and forest products industries. Wholly-owned Tolko Industries Ltd. is a leading manufacturer of a wide range of forest products for customers around the world, including lumber, plywood, veneer, oriented strand board, co-products, biomass power and a growing number of specialty wood products.
ABOUT PROVIDENCE GRAIN GROUP
Providence Grain Group Inc., established in 2002, is one of the few producer-owned agricultural commodity businesses in Canada. PGG offers grain drying, storage, off farm pickups, specialized marketing services, hedging, futures, and options. PGG's shareholders are producers, providing a solid foundation for the farmers who trust PGG's expertise and rely on the solutions it provides at the field level, as well as for buyers who are confident in PGG products and the service it provides. Each PGG elevator, which are in all three Prairie Provinces, is a full service, primary elevator, licensed and bonded by the Canadian Grain Commission. In addition to its grain merchandising business, PGG also owns a 49% interest in Columbia Containers Ltd.
SOURCE Providence Grain Group Inc.
For further information: Ian Cordner, Kelly Tkaczyk or Gayle Kelly at: [email protected]