Bunge signs asset purchase agreement to acquire the grain elevator assets of North West Terminal

A buyer has been found for North West Terminal Ltd. (NWT) grain business near Unity, Sask.

Bunge has signed a purchase agreement to acquire the grain elevator and associated storage assets. The fermentation and distillation facility will continue to be operated by NWT.

The purchase price is $27 million, but a final figure, after some costs are included, will be disclosed to the approximately 800 NWT shareholders by the end of this week.

The NWT terminal has been closed and has not buying any grain for over a year. Negative margins and lower handling were the reasons.

The proposed transaction does not include NWT’s minority ownership position of the Alliance Grain Terminal in Vancouver.

NWT Chief Executive Officer Jason Skinner said money from the sale would go to pay down the $42-million bank debt, adding it will give the fermentation and distillation business the greatest chance of success.

“The distillation fermentation business has been treading water as it’s been developing new markets. It would have had losses the last two years, but certainly the lion’s share of losses has been coming from the grain side of the business,” Skinner said.

It’s been a long process finding a buyer. Skinner said in August 2023, the board engaged consultants, FTI Capital Advisors from Toronto.