CWB has entered into an agreement to buy another farmer-owned grain terminal.
The company announced June 23 that it has entered into an agreement to buy all outstanding shares of Great Sandhills Terminal (GST) at Leader, Sask., 150 kilometres northwest of Swift Current.
Under the agreement, CWB will acquire all issued and outstanding GST shares for $582 per share.
The total value of the deal is $17.5 million.
GST’s board will distribute information to shareholders in the coming weeks and will seek shareholder approval for the deal at a meeting to be held in August.
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GST board members have unanimously endorsed the deal and are recommending that shareholders approve the transaction, says a CWB news release.
The agreement, if approved, will give CWB complete ownership and control of GST’s high-throughput concrete terminal and a majority stake in Great Sandhills Railway, a short-line railway company that operates 200 kilometres of track between Burstall, Sask., and Swift Current.
GST’s terminal at Leader has storage capacity of 23,500 tonnes.
According to its website, GST also owns a minority equity interest in GNP Consulting Ltd., a logistics consulting company based in Calgary, and a minority interest in Alliance Grain Terminal, a 102,000 tonne export terminal in Vancouver.
The announcement comes close on the heels of another CWB deal that saw it acquire the assets of Prairie West Terminal at Plenty, Sask.
“CWB and Great Sandhills Terminal have worked very well together for many years providing farmers with valuable marketing options,” said CWB president Ian White.
“This purchase strengthens CWB’s growing network of assets across Western Canada and provides the opportunity for an ongoing farmer ownership stake in GST through our Farmer Equity Plan.”
Added Wayne Hittel, chair of Great Sandhills Terminal: “Today’s agreement brings together the strong reputations of both companies under one roof.… CWB’s prized international brand and GST’s service excellence are just two of the reasons this acquisition is a win-win for all stakeholders — CWB, GST shareholders, our local community, and all of our farmer-customers.”
