REGINA, SASKATCHEWAN, CANADA — AGT Food and Ingredients Inc. announced on Oct. 30 the closing of the previously announced acquisition of Mobil Capital Holdings Ltd. and its subsidiaries for $57.5 million.
The deal includes the issuance of $19 million of common shares in the capital of AGT, 722,803 common shares, and a $19.5 million promissory note repayable in equal installments for a period of five years from the date of closing.
Mobil operates short-line railways, transloads bulk commodities, trades pulses and grains, and operates a modular designed, moveable plant for processing agricultural commodities in Saskatchewan and Ontario. Its subsidiaries include Mobil Grain Ltd., Saskatchewan Ltd., Big Sky Rail Corp., Mobilex Terminal Ltd. and Mobil Transloading Ltd.
“AGT is very excited about the completion of the acquisition of Mobil,” said Murad Al-Katib, president and chief executive officer of AGT. “With a positive harvest season completed in Saskatchewan, export markets are looking to Western Canada to supply them. In this global supply and demand environment, we have been clear that rail transportation and loading infrastructure are essential elements to the competitiveness of our legacy business segment, both for our customers and to supply pulses and durum wheat to our own global operations.”
“The Mobil acquisition follows from our West Central Road and Rail acquisition announced in June 2015,” he said. “With these two groups of assets, AGT is taking control of its logistics chain with ownership of handling facilities, rail logistics assets and short line rail infrastructure. Efficient transportation modes are essential to ensuring the smooth movement of our products to market, matching origination and production to demand and supply requirements from farm to customer. Integration of our supply chain is key to our objectives in continuing to grow our business and with it our shareholder value.”