The deal with GCM Grosvenor is expected to close later this year or early next year
REGINA — Regina-based AGT Foods today announced the sale of its shortline rail and bulk handling facilities to GCM Grosvenor.
Financial details were not disclosed, but the sale includes MobilGrain, Last Mountain Rail, Big Sky Rail, MobilEx Terminal Ltd. in Thunder Bay and Intermobil, the intermodal terminal in Regina, as well as the loading facilities in Condie, Aylesbury, Delisle, Dinsmore, Lucky Lake, Beechy, Elrose, Kyle, Eston and Laporte.
AGT and MobilGrain have signed a 20-year agreement so AGT can continue to use the infrastructure.
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“AGT is thrilled to enter this partnership with GCM Grosvenor, a key infrastructure investor who wants to hold the infrastructure for the long term, improve and grow it to build on the work that MobilGrain and AGT have done over the past two decades operating these assets,” CEO Murad Al-Katib said in a news release.
He pointed to the planned expansion of the Lake Diefenbaker irrigation area as an opportunity for the region that uses the shortline rail service.
He said the sale returns significant capital to AGT.
“The long-term agreement with GCM Grosvenor and MobilGrain means AGT will remain a mainstay in the communities along the railway in which we operate today,” he said.
Matthew Rinklin, managing director of infrastructure at GCM Grosvenor, said all employees will remain with MobilGrain.
“In addition, partnering with Bluejay Capital Partners, whose transportation and shortline rail expertise is vital, will further strengthen MobilGrain’s future success,” he said.
GCM Grosvenor is a global alternative asset management solutions provider with about $80 billion in assets under management, according to the news release. It is headquartered in Chicago and trades on Nasdaq.
Bluejay Capital is a private equity firm that invests solely in transportation and logistics.
The transaction is subject to regulatory approvals and is expected to close in late 2024 or early 2025.
Contact karen.briere@producer.com
