Fourth purchase | The Manitoba firm recently bought a North Dakota-based sunflower processing facility and bean processing plants in Minnesota and China
Legumex Walker is continuing its run of recent acquisitions with the announcment that it has bought Keystone Grain — the largest sunflower seed processor in Canada.
The Winnipeg-based Legumex Walker, which processes pulses, special crops and canola, has signed a letter of intent to buy all outstanding shares of Keystone Grain, located in Winkler, Man.
Legumex Walker didn’t release the purchase price, but Joel Horn, Legumex president and chief executive officer, said the deal would boost market access and sales into the bakery market.
“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.
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Assuming the deal is finalized in September, it will represent Legumex Walker’s fourth acquisition of 2012. This winter the processor bought the St. Hillaire Seed Company, a dry bean processor in Minnesota.
At the same time, the company bought 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.
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.
