Agricore elevator shuffle
June 01, 2002
by Emily Wilson
WINNIPEG, MANITOBA, CANADA — Agricore United is to take over Louis Dreyfus’ elevator in Regina, Saskatchewan, in exchange for Agricore United’s grain elevators in Rycroft and Falher, both in Alberta province.
The sale of the Falher and Rycroft elevators in the Peace River region of Alberta fulfills one of the requirements Canada’s Competition Bureau set out with respect to the merger of Agricore Cooperative Ltd. and UGG. The elevator trade also advances strategic goals for both companies, company officials said.
"We are disappointed we have to sell any of our facilities, but we will significantly improve our presence in Saskatchewan through this deal," said Ron Enns, managing director of Country Operations for Agricore United.
Louis Dreyfus will continue to have a presence in the Regina region through its terminal in Glenavon. The addition of the Alberta facilities, along with the company’s existing terminal in Dawson Creek, British Columbia, will allow expansion of Louis Dreyfus’ Peace River operations. With its Canadian headquarters in Calgary, Louis Dreyfus has been active in Canada for 60 years, buying and exporting Canadian grains and oilseeds to customers worldwide.
In separate deals, Agricore United will also sell its 50% interest in the 32,000-tonne Prairie West Terminal Joint Venture, Saskatchewan, to Prairie West Terminal, the producer group that owns the other 50% share of the terminal. In a further sale, Agricore United’s 16,000-tonne, 57-car grain elevator at Morinville, Alberta, will be sold to Westmor Terminals Inc., a local producer group. Agricore United will continue to operate high throughput elevators at nearby Acheson and Star.