Regina-based FarmPure Seeds has purchased SW Seed Canada Ltd., a wholly owned subsidiary of Svalof Weibull AB in Sweden, for an undisclosed price.
The deal will close Sept. 1.
Trenton Baisley, chief executive officer of FarmPure, said the deal happened quickly after the parent company approached FarmPure in mid-April.
“They told us they had an interest to divest,” he said.
For FarmPure, it was an opportunity to add to its assets and expand its western Canadian locations.
The assets included in the transaction are a grass seed cleaning and processing plant in Nipawin, Sask., a canola cleaning and treating facility in Laurier, Man., and a retail operation in Brandon. It also includes varieties of canola, grass and legumes.
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“We don’t have any hard assets right now in terms of canola packaging,” Baisley said. “In terms of the (seed) portfolio, everything they have, we have. It just makes our portfolio more robust.”
He said the Nipawin facility in particular was a good fit for FarmPure and will add to its international arm, FarmPure Global.
The acquisition of more seed varieties offers farmers more choice.
“Our varieties will now go into more retail options,” he said.
FarmPure’s grower-owners will also benefit from an expanded dealer base for their products.
The deal did not include a seed lab in Nipawin or the seed breeding side of SW.
Baisley said some employees will remain with FarmPure but others will receive financial packages from SW. There will be some restructuring to avoid duplicate management, he said.
