The sale comprises 13 grain assets and crop inputs retail assets, and Cargill's 50 per cent share of South West Ag Partners, a joint venture which includes nine grain and crop inputs facilities in Ontario.
The sale does not include the Cargill export terminal in Sarnia, or the AgResource crop inputs wholesale business. All other Cargill grain and crop inputs assets in Canada and all other Cargill businesses in Ontario or throughout Canada are not included in the sale agreement.
Terms of the pending sale are not being disclosed. Finalization of the transaction will take place upon the completion of definitive agreements and any required regulatory reviews, which are expected the second quarter of the calendar year.
"Cargill continually evaluates its assets to ensure its sites are operating efficiently and are competitive in the areas it serves," said Dave Baudler, managing director for Cargill's grain business. "After an in-depth evaluation of our grain and crop inputs businesses in Ontario, we came to the conclusion that a sale of those assets was the best path forward to remain competitive and deliver on our growth strategy. La Coop fédérée was the buyer of choice to ensure a smooth transition for employees and customers."
"Our Agromart retail network and LCF grain trading businesses have been growing steadily in recent years and the addition of these facilities will be a complementary fit to existing operations in Ontario, which already include four crop input terminals, 16 locally-owned joint-venture retailers and a grain trading group," added Sébastien Léveillé, executive agribusiness vice-president for La Coop fédérée.
Glenn Houser, managing director for Cargill's crop inputs business, reiterated Cargill's dedication to its growers and customers. "Cargill remains committed to helping Canadian growers and agricultural producers succeed," said Houser. "We will maintain the operation of 40 crop inputs retail locations, 26 elevator assets, five export terminals, and two oilseed processing facilities to serve growers throughout the country."
"We are confident that existing customers will benefit greatly from our experience and expertise in providing crop input, grain handling and merchandising services in the region, and from having access to a broad agribusiness retail network that reaches well beyond Ontario, with over a hundred affiliated locations across Canada," added Sébastien Léveillé.
"South West Ag Partners continually looks for opportunities to ensure its business is operating efficiently and is aligned to meet the needs of our customer," said Paul Hazzard, general manager for South West Ag Partners Inc. "Working with La Coop fédérée will, without a doubt bring new opportunities to our customers," he added.
Facilities included in the sale to La Coop fédérée are:
- Cargill grain: Melbourne; Princeton; Shetland; Staples; Talbotville
- Cargill crop inputs: Alliston; Clinton; Courtland; Harriston; Harrow; Melbourne; Mount Albert; Princeton; Shetland; Talbotville; Tilbury; Waterford
- South West Ag Partners grain: Becher; Grande Pointe; Palmerston Grain; Rutherford; Tupperville; Wallaceburg; all grain satellite relationships
- South West Ag Partners crop inputs: Becher; Dover; Eberts; Ridgetown; Rutherford