Continuing its run of acquisitions in 2012, Legumex Walker announced today it has purchased Keystone Grain – the largest sunflower seed processor in Canada.
Legumex Walker, a Winnipeg company that processes pulses, special crops and canola, has signed a letter of intent to purchase all of the outstanding shares of Keystone Grain, which is located in Winkler, Man.
Legumex Walker didn’t release the purchase price for its acquisition, but Joel Horn, Legumex president and chief executive officer, said the deal would boost market access and sales into the bakery market.
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“Keystone is a highly strategic addition to our U.S.-based sunflower processing assets and significantly enhances our ability to service the growing demand for sunflower and flax products in the bakery ingredients market,” Horn said, in a statement.
Assuming the deal is finalized in September, it will represent Legumex Walker’s fourth acquisition of 2012. This winter the processor bought out the St. Hillaire Seed Company, a dry bean processor in Minnesota. At the same time, the company purchased sunflower seed processing facilities from Anderson Seed Company in North Dakota.
Also this winter, Legumex began processing beans at a plant in Tianjin, China.
As well, Pacific Coast Canola, a subsidiary of Legumex Walker, plans to finalize construction and open its canola crushing plant in Washington State early next year.
Legumex’s latest deal offers advantages for both companies, said Don Falk, Keystone Grain president.
“Joining forces with Legumex Walker will allow us to take advantage of currently available growth opportunities we could not pursue on our own,” Falk said. “(This) will create one of the largest suppliers of sunflower and flax products in North America with bakery ingredient sourcing and processing on both sides of the Canada/U.S. border – a significant strategic advantage.”
Keystone operates a sunflower processing facility and a flax processing plant in Winkler and a bird food processing facility in Winnipeg.
The company is also a signficant player in the bird food market, as it supplies and packages bird food to several large North American retailers.
Legumex Walker owns 11 processing plants on the Canadian Prairies, the U.S. Midwest and in China. It also has an 85 percent share in Pacific Coast Canola.
