Cargill to divest grain and crop inputs assets in Ontario

Cargill has signed an agreement to divest its grain and crop inputs retail assets in Ontario to agri-food cooperative La Coop fédérée.

The divestment consists of 13 grain assets and crop inputs retail assets, and Cargill’s 50% stake in South West Ag Partners, a joint venture that comprises nine grain and crop inputs facilities in Ontario.

The deal does not include Cargill’s export terminal in Sarnia, or the AgResource crop inputs wholesale business, or all other grain and crop inputs assets and all other businesses in Ontario or throughout Canada.

The financial details of the deal have not been disclosed.

The facilities being divested include grain operations in Melbourne, Princeton, Shetland, Staples, Talbotville; Cargill crop inputs in Alliston, Clinton, Courtland, Harriston, Harrow, Melbourne, Mount Albert, Princeton, Shetland, Talbotville, Tilbury, and Waterford; South West Ag Partners grain in Becher, Grande Pointe, Palmerston Grain, Rutherford, Tupperville, Wallaceburg, as well as all grain satellite relationships, South West Ag Partners crop inputs in Becher, Dover, Eberts, Ridgetown, Rutherford.

Cargill grain business managing director Dave Baudler said: “Cargill continually evaluates its assets to ensure its sites are operating efficiently and are competitive in the areas it serves.

“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.”

La Coop fédérée executive agribusiness vice-president Sébastien Léveillé said: “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.”

Cargill crop inputs business managing director Glenn Houser said: “Cargill remains committed to helping Canadian growers and agricultural producers succeed. 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.”

The transaction will be finalised after completion of definitive agreements and regulatory reviews, which are expected to commence in the second quarter of this year.