VERNON, BC, Feb. 5, 2019 /CNW/ - Timber Investments Ltd. (Timber) is pleased to announce that it has completed the purchase of a 51% interest in Columbia Containers Ltd. (CCL, or the Company) from Providence Grain Group (PGG), with PGG retaining the remaining 49% ownership interest. Other terms of the private transaction were not disclosed.
CCL, which operates a specialty 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.
This investment in CCL will complement Timber's interests in two other west coast logistics operations. Timber is the principle investor in Fibreco Export Inc., a bulk wood pellet and grain loading facility located on the north shore of Burrard Inlet. The Fibreco facility, which is capable of receiving unit trains and loading out panamax sized vessels, will have an annual capacity of 3.6 million tonnes when its current expansion project is completed. Tolko Industries (wholly owned by Timber) also operates Lulu Island Terminal, a wood product container transloading facility located in Richmond, British Columbia, which is the largest purpose-built facility of its type on the west coast of Canada.
Fort Capital Partners and Blake, Cassels and Graydon LLP provided financial and legal advice to Timber in connection with the investment.
ABOUT COLUMBIA CONTAINERS LTD.
Strategically located on over 14 acres of land on Port Metro Vancouver's South Shore, Columbia Containers 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 the privately-owned investment company of the Thorlakson family of 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, are a full service, primary elevators, 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.