CWB to Purchase Mission Terminal and Other Eastern Grain Handling and Shipping Assets
Date Posted: November 27, 2013
WinnipegCWB announced Nov. 26 it has reached an agreement to purchase all of the issued and outstanding shares of Mission Terminal, Les √Čl√©vateurs des Trois-Rivi√®res, and Services Maritimes Laviolette from Upper Lakes Group Inc.
This strategic purchase provides CWB with the advantages of an eastern port and positions CWB as the largest east coast shipper of producer cars from Western Canada.
These acquisitions provide the starting point for a network of strategic grain-handling assets for CWB-marketed grain and they are another critical step in CWB's strategy to transition towards an operating model independent of the government.
"The agri-business landscape is evolving quickly - and the purchase of these companies is a first step in building and securing CWB a strong position in the grain marketing supply chain," said CWB president and CEO Ian White.
"The flexible, efficient handling and transportation operations of Mission Terminal will let CWB source grain directly from farmers and move it right on to the ships docked at the East Coast."
Mission Terminal Inc.'s head office is located in Winnipeg, Manitoba.
The company sources and markets grain such as wheat, durum, barley, canola, rye, flax, peas and oats, and industrial products, for customers around the globe.
It operates handling facilities both in Western Canada and at Thunder Bay. Mission Terminal Thunder Bay, located at the mouth of the Mission River, has a licensed storage capacity of 136 500 MT and handles approximately 1.5MMT annually.
Les √Čl√©vateurs des Trois-Rivi√®res (ETR) is located in Trois-Rivi√®res, Quebec, and is a receiving, storage and loading facility with a storage capacity of 110 000 tonnes of grain, 78 000 tonnes of alumina and 20 000 tonnes of coke.
It can receive grain by ocean ship, laker, rail or truck and is one of the few facilities able to unload vessels of up to Panamax size.
Services Maritimes Laviolette (SML) is also located in Trois-Rivi√®res, Quebec and offers stevedoring and related services.
"CWB has strong long-term relationships and has worked closely with each of the companies we are acquiring.
"We have always respected their solid reputation among prairie farmers and we will continue to value all of the companies doing business with them in the country and at port," added White.
"We share very similar corporate cultures, both placing a high value on the contribution that farmers bring to our respective companies.
"We welcome all the employees to the CWB team and look forward to their participation in building a great Canadian-focused grain company".
White added that the purchase starts the building of a more vertically integrated company and complements CWB's strengths in sales and marketing.
"For over 75 years, CWB has been building a prized, international brand based on our reputation for quality and service with domestic and international customers.
"With this acquisition, we will bring these same brand qualities to our grain-handling and port operations - forming a new foundation to last the next 75 years."
The purchase is scheduled to be completed on December 31, 2013.
For more information visit www.cwb.ca.