Legumex Walker sells stake in Blue Hills plant

by World Grain Staff
Share This:

WINNIPEG, MANITOBA, CANADA — Legumex Walker Inc. announced on May 1 that it has sold its 20% stake in Blue Hills Processors (2003) Ltd. to BHPL’s majority owner for total gross proceeds of C$1.8 million.

The company said the sale represents a significant milestone in its initiative to optimize its wholly-owned processing capacity following the combination of the Roy Legumex Group of Companies and Walker Seeds Ltd. to form Legumex Walker in July 2011.

“Our relationship with Blue Hills has served us well for a number of years as we’ve been both a substantial minority investor and — at times — its largest customer,” said Anthony Kulbacki, Legumex Walker’s chief financial officer. “Because of our progress in optimizing our own processing capabilities, we will be better positioned to meet our processing needs through internal resources. As a result, it’s the right time to monetize our investment in Blue Hills and redeploy the capital elsewhere.”

The company continues to focus on profitable growth in sourcing, processing and sales. In addition to the acquisitions of St. Hilaire Seed Company and assets of Anderson Seed Company earlier this year, the Company plans to expand its capacity and capabilities at its processing facilities in Regina and Saskatoon.

It is also exploring international sourcing and processing options that diversify production risks and provide more cost-effective logistics for meeting various customer needs. The commencement of bean processing in China earlier this year was an important first step in this regard.

The company's original investment of approximately C$440,000 was made after the completion of construction of BHPL in 2003 through its predecessor company, Walker Seeds Ltd.

Partners