MONTREAL, QUEBEC, CANADA – La Coop fédérée, an agri-food co-operative with establishments across Canada, has concluded, through its Agricultural Division, its acquisition of Cargill's grain and crop input assets in Ontario after obtaining the concurrence of the Competition Bureau.
"This transaction is part of La Coop fédérée's sustainable growth plan in line with its ambition to become a Canadian leader in the agricultural sector and allows us to increase our presence in Ontario and in the Canadian market," said Ghislain Gervais, president of La Coop fédérée.
"This agreement confirms our company's position as one of the most important players in the Canadian agricultural industry, with products totaling more than $2 billion last year," said Gaétan Desroches, chief executive officer of La Coop fédérée.
The conditions of the sale have not been disclosed.
As previously noted, the sale includes the assets of 13 grain and farm inputs establishments and 50% of the shares held by Cargill in South West Ag Partners, a joint venture that includes nine grain and farm input establishments in Ontario.
The sale excludes the Sarnia export terminal and AgResource agricultural input wholesale business as well as all other Cargill grain and farm input assets in Canada and all other Cargill businesses in Ontario and in Canada.
The establishments included in the sale are as follows:
· Cargill Grains: Melbourne; Princeton; Shetland; Staples; Talbotville
· Farm Inputs Cargill: Alliston *; Clinton; Courtland; Harriston; Harrow*; Melbourne; Mount Albert; Princeton; Shetland; Talbotville; Tilbury*; Waterford*
· Grains South West Ag Partners: Becher; Great Tip; Palmerston Grain; Rutherford; Tupperville; Wallaceburg; all satellite grain partnerships
· Agricultural inputs South West Ag Partners: Becher; Dover; Eberts; Ridgetown; Rutherford
*Sites operated independently as discussed with the Competition Bureau.
With this transaction, the grain sector of La Coop fédérée's Agricultural Division is expanding its activities and building on the established assets in Quebec and the Atlantic Provinces after having experienced strong growth in recent years.
Cargill, South West Ag Partners, and Ontario's existing grain trading group are now the marketing arm of La Coop fédérée, a team that will act as a partner for producers to market their crops on the market. local, industrial or international markets.
"This acquisition demonstrates that the business model of La Coop fédérée's Agricultural Division, based on the proximity of our retailers to agricultural producers, is relevant and efficient in an industry that, like many others, is experiencing an important wave of consolidation," said Sébastien Léveillé, executive vice-president of La Coop fédérée.