Source: Viterra news release
Viterra Inc. (“Viterra”) today announced that it has entered into an asset purchase agreement with Gardiner Dam Terminal Ltd. (GDT) to purchase its 50% interest in the grain handling facility at Strongfield, SK. Viterra currently holds the other 50% ownership interest, and to date, has been operating the facility with GDT under a joint venture agreement.
“We are pleased to be working towards full ownership of the grain handling facility at Strongfield and look forward to integrating it into our world class network of assets,” said Kyle Jeworski, Viterra’s President and CEO for North America. “Through our agreement with GDT we have been proudly serving local customers for the last several years, and we look forward to building on these relationships by continuing to provide a high level of service and connecting them to global markets.”
Further, current employees at the grain handling facility will be offered the opportunity to join Viterra’s team, allowing farm customers to work with the same people at the elevator.
A separate asset purchase agreement has been reached with GDT AgServices that will see Riverbend Co-operative Ltd. take ownership of the crop input locations at Broderick, Strongfield and Tullis, SK, with employees of those facilities being offered the opportunity to join the Riverbend Co-operative team allowing continuity for customers.
The agreements are subject to customary closing conditions, including shareholder approval at a special meeting scheduled for December 13, 2018. If these conditions are met, the transaction is expected to close on December 19, 2018.