June 16, 2009
Viterra acquires APLP canola crush operations
Press Release
Viterra Inc has announced that it will acquire the canola crushing assets of Associated Proteins LP (APLP) in Ste Agathe, Manitoba.
APLP has a canola crush capacity of 1,000 tonnes per day, and with immediate access to North America''s major rail lines, is well situated to source raw materials domestically and supply North American end-use markets.
Under the terms of the Purchase and Sales Agreement, Viterra will acquire the assets of APLP for US$64 million plus working capital. The agreement is subject to Canadian Competition Bureau approval. The transaction is anticipated to close on June 25, 2009.
"This acquisition is an ideal fit for Viterra. It bolsters our presence in
food processing and complements our position as Canada''s leading canola exporter," said Mayo Schmidt, President and CEO. "It is consistent with our overall strategy to grow our company''s value-added capabilities."
Canola oil is low in trans fats and saturated fats and has one of the healthiest fat profiles of any of the major vegetable oils. Significant growth for canola oil is expected as it replaces soy oil in food applications. The Ste. Agathe plant is a scalable operation with future growth and expansion opportunities to service the growing markets for healthy vegetable oils.
"Through this transaction, we will be able to further leverage our value chain to meet increased crush demands and supply an expanding healthy vegetable oil market," said Karl Gerrand, Viterra''s Senior Vice-President, Food Processing. "APLP''s management team and staff have an impressive track record of execution and we look forward to working together to grow the business and its customer base."
Viterra Inc. is Canada''s leading agribusiness, with extensive operations and distribution capabilities across Western Canada, and with operations in the United States, Japan, Singapore and Geneva. The company is diversified into sales and services of crop inputs and equipment, grain handling and marketing, livestock feed, agri-food processing and financial products. These operations are complemented by value-added businesses and strategic alliances, which allow Viterra to leverage its pivotal position between Prairie farmers and destination customers. The company''s common shares are listed on the Toronto Stock Exchange under the symbol VT.