La Coop fédérée will soon become a much bigger player in Ontario’s crop retail business.
Cargill announced today that it will sell its grain and crop inputs retail assets in Ontario to La Coop fédérée.
The deal includes Cargill’s 50 per cent ownership position in South West Ag Partners, which includes nine grain and crop input facilities.
The deal does not include Cargill’s export terminal in Sarnia or the AgResource crop inputs wholesale business.
Why it matters: The deal means more concentration in the crop inputs business in Ontario, as La Coop fédérée already owns other significant assets in crop inputs and retail in the province.
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“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,” said Dave Baudler, managing director for Cargill’s grain business. “ La Coop fédérée was the buyer of choice to ensure a smooth transition for employees and customers,”
La Coop fédérée already owns the Agromart retail group and in total four crop input terminals, 16 locally-owned joint-venture retailers and a grain trading group in Ontario.
“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,” said Sébastien Léveillé, executive agribusiness vice-president for La Coop fédérée.
Here’s the list of facilities being sold from Cargill to La Coop fédérée:
- 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
Terms were not disclosed. It is expected the deal will close in the second quarter of 2018 after potential regulatory reviews.
La Coop fédérée represents more than 120,000 members, producers and consumers grouped into nearly 70 cooperatives with operations located across Quebec, New Brunswick, Ontario, Alberta, Manitoba, and Saskatchewan.
