WINNIPEG, MANITOBA, CANADA — Legumex Walker Inc. (LWI) announced on Sept. 14 that The Scoular Company will buy LWI’s Special Crops Division for C$94 million ($71,167,164) plus the amount of net working capital at closing, on a cash free debt free basis, paid in cash. The sale represents a C$174.6 million ($173, 728, 755) transaction value for LWI, based on LWI’s working capital as of June 30. The actual purchase price and transaction value are subject to working capital and other adjustments in accordance with the agreement.
Scoular is a U.S.-based agricultural marketing company that manages supply chain risk for global suppliers and end-users of grains, oilseeds, and other feed and food ingredients.
As announced previously, the Special Committee of the board of LWI oversaw an extensive process starting in March and considered a number of alternatives to maximize shareholder value. As a result of the strategic review, and in light of the challenges facing the company, the Special Committee unanimously determined that a sale of the Special Crops Division was most likely to maximize shareholder value.
“Following careful review of the transaction by the Special Committee in consultation with our external financial and legal advisors, we believe this transaction represents excellent value and is in the best interests of LWI shareholders,” said Bruce Scherr, chairman of the board of directors of Legumex Walker Inc.
“This is a highly strategic addition to our existing global feed and food ingredient merchandising business and U.S.-based grain-handling network,” said Bob Ludington, Scoular’s chief operating officer. “The transaction will significantly increase our product and geographic footprint, which in turn will increase our ability to serve new and existing customers worldwide. We expect to operate Scoular Special Crops much like LWI operates the business today, but with the financial capacity to expand operations, product lines, and distribution channels. As a result, we will be able to provide additional value to Canadian producers and pursue opportunities to serve a global customer base seeking specialty products associated with healthy food trends.”
“The goal for our Special Crops Division was to bring together several exceptional businesses in our industry, diversify across our product offerings, growing regions and customers, and create an exceptional platform that would thrive as it grew,” said Joel Horn, president and chief executive officer, Legumex Walker Inc. “Coming off a record year for Special Crops, we are proud that an organization of the caliber of Scoular recognizes the value that we have created.”