Richardson's News Release
March 20, 2012 (Winnipeg, MB)
Richardson International Limited is pleased to announce it has agreed to acquire in excess of $900 million worth of Viterra assets, including grain handling, crop input and processing facilities and related working capital, which Glencore International plc plans to divest following its successful acquisition of Viterra. Earlier today, Glencore announced its offer to purchase all of the issued and outstanding shares of Viterra has been supported and recommended by Viterra’s Board of Directors.
The assets to be acquired by Richardson include 19 country elevators and the crop input centres co-located with those elevators (see Schedule A attached), which complement the Richardson Pioneer network of grain elevators and crop input centres across Western Canada. Following the transaction, Richardson and Glencore-owned Viterra will be similarly sized grain handling companies. Reducing the dominance of a single company should benefit western Canadian farmers through increased choice and competition for their business.
“This is an important milestone in our 155-year history as it strengthens its position as a Canadian and global leader in agriculture and food processing,” says Hartley T. Richardson, Chairman of Richardson International and President & Chief Executive Officer of James Richardson & Sons, Limited. “The same pioneering spirit with which our company was founded is alive and well today as we, together with our management and employees, grow for the future by expanding our capabilities to compete both in Canada and on the world stage.”
Richardson’s agreement with Glencore includes the purchase of a 25% ownership interest in Cascadia Terminal (Vancouver), which will allow Richardson to ship increased volumes of grain and oilseeds through that port following the acquisition. Richardson will also acquire a Viterra terminal in Thunder Bay, ON, which will enhance the company’s current operations at that port.
Richardson will purchase the Can-Oat Milling business with oat processing plants in Portage la Prairie, MB, Martensville, SK and Barrhead, AB, and 21st Century Grain Processing, which has an oat processing plant in South Sioux City, NE and a wheat mill in Dawn, TX.
“This is a very exciting time for Richardson. We are adding strategic assets to strengthen our presence throughout Western Canada, which will allow us to offer producers greater choice and improved access to world markets,” says Curt Vossen, President of Richardson International. “We are also building on our success in the food processing business with the addition of Can-Oat Milling and 21st Century Grain, which have proven management teams that we look forward to working with.”
The transaction between Richardson and Glencore is subject to all requisite regulatory approvals being obtained. Following the successful acquisition of these assets, current employees at the selected locations will be offered the opportunity to join the Richardson team.
About Richardson International Limited
Richardson International is a worldwide handler and merchandiser of all major Canadian-grown grains and oilseeds and is recognized as a global leader in agriculture and food processing. Based in Winnipeg, Manitoba, with over 1,700 employees across Canada, Richardson is Canada’s largest privately owned agribusiness. One of Canada’s 50 Best Managed Companies, Richardson is a wholly-owned subsidiary of James Richardson & Sons, Limited.
About James Richardson & Sons, Limited
James Richardson & Sons, Limited is a 100% Canadian-owned and controlled, private corporation owned by the Richardson family. The company has interests in agriculture and food processing, oil and gas exploration and development, financial services, real estate and private equity investments and is headquartered in Winnipeg, Manitoba.
NEW ELEVATOR LOCATIONS
Lacombe East, AB
Lavoy, AB
High Level, AB
Provost, AB
Vulcan, AB
Assiniboia, SK
Carrot River, SK
Davidson, SK
Kindersley, SK
Alameda, SK
Melville, SK
Langenburg, SK
Maple Creek, SK
Regina East / White City, SK
Unity, SK
Red River South, MB
South Lakes, MB
Dawson Creek, BC
Fort St. John, BC