Ceres Global Ag Corp., the parent company of the Ceres Northgate Grain Terminal in southeastern Saskatchewan, has taken a $2.8 million plunge into the organic grain market.
Through its wholly owned subsidiary Riverland Ag Corp., Ceres has acquired a 100 percent equity stake in Nature’s Organic Grist, a supplier of organic and ancient grains including cereals, pulses, flours and feed products.
The acquisition will be funded from existing working capital, the company said in a written statement.
The acquisition is expected to cost US$2.8 million up front, with a potential for further payments to Natures Organic Grist’s former owner, based on the future performance of the business.
Nature’s Organic Grist will continue to operate under its current name, as a subsidiary of Ceres.
“The addition of Nature’s Organic Grist broadens Ceres’ portfolio of products and services and reinforces our vision to be the most trusted and valued partner to quality-conscious customers,” said Robert Day, Ceres’ president and chief executive officer.
“Natures Organic Grist brings a skill-set needed to be successful in the organic space, while Ceres’ infrastructure, farmer relationships and end-user customer-base can be utilized to lower logistical costs and increase access on both ends of the organic supply chain,” he said.
Ceres supplies a variety of products, including agricultural commodities, value-added products, fertilizers, energy products and logistics services.
The company is headquartered in Minneapolis and operates subsidiaries in six locations, including Savage, Duluth, and Shakopee, Minnesota.
Other Ceres facilities are located in Northgate, Sask., and Port Colborne, Ont.
Ceres’ North American facilities have an aggregate grain and oilseed storage capacity of about 30 million bushels.
The company also holds a 17 percent interest in Canadian seed development company Canterra and a 25 percent interest in Stewart Southern Railway Inc., a short-line railway located in southeastern Saskatchewan.