Canadian food processor Legumex Walker to acquire Keystone Grain

Canadian food processing company Legumex Walker has entered into an agreement to acquire Keystone Grain, a processor of sunflowers and flax products, for an undisclosed amount, as part of its plan to strengthen its position in the bakery ingredients market.

Under the agreement, Legumex Walker will buy all of the outstanding shares of Keystone.

Legumex Walker president and chief executive offer Joel Horn said that the acquisition will complement its sunflower processing assets in the US, and strengthen its ability to cater to the growing demand for sunflower and flax products in the bakery ingredients market.

"Available processing capacity at our existing sunflower facilities will allow us to capitalise on meaningful growth opportunities inherent in the Keystone business," Horn added.

Keystone, based in Manitoba, Canada, processes and markets a range of food-grade products, primarily sunflower and flax products such as bakery sunflower kernels, confectionery sunflower kernels, and several types of milled and non-milled flax.

It owns three facilities – a sunflower processing plant and a flax processing plant in Winkler, Manitoba, and a bird food processing facility in Winnipeg, Manitoba, which have a combined capacity of 62,000mt per year.

The company also processes and packages wild bird food products under the Emerald Farms brand and private label brands.

The acquisition, which is subject to definitive documentation and customary closing conditions, is expected to be completed in September 2012.

Canada-based Legumex Walker, which processes and merchandises pulses and other special crops and canola products, expects the deal to be accretive to its 2013 earnings.

Until the completion of the purchase, the two companies have agreed to coordinate over the sourcing of feedstock and selling of products.