Richardson acquires Viterra milling assets
May 1, 2013
by Eric Schroeder
WINNIPEG, MAN. — Richardson International Ltd. has acquired certain grain, crop inputs and milling assets from Viterra Inc. for $800 million.
The transaction was first announced in March 2012, when Glencore International P.L.C., the largest publicly-traded commodity supplier, agreed to acquire Regina, Sask.-based Viterra Inc. for C$6.1 billion. At that time, Glencore agreed to sell certain assets of Viterra to Agrium Inc. and Richardson International Ltd.
As part of the transaction, Richardson acquired 19 country elevators and 13 crop input centers co-located with those elevators formerly owned and operated by Viterra. Richardson said the facilities will complement the Richardson Pioneer network of grain handling and crop input facilities across Western Canada. Richardson also acquired a Viterra terminal in Thunder Bay, Ont., which will increase capacity and enhance the company’s operations through that port.
“This is an important milestone in our company history, and it is especially significant as we celebrate the 100th anniversary of Richardson Pioneer in 2013,” said Curt Vossen, president and chief executive officer of Richardson International. “Through this acquisition, we are growing our business substantially, both in terms of assets and people. By increasing our presence in many communities across Western Canada, we look forward to enhancing our ability to serve customers in new and existing markets.”
Richardson also acquired Viterra’s milling business, which includes oat processing plants in Portage la Prairie, Man.; Martensville, Sask.; and Barrhead, Alta., as well as an oat processing plant in South Sioux City, Neb., and a wheat mill in Dawn, Texas. The businesses will operate as Richardson Milling.
“We are excited to continue our diversification into value-added processing and build on the success we have achieved in canola processing,” Mr. Vossen said. “The oats processing business also provides us with an opportunity to establish a presence in the U.S., which will increase our profile and enhance our ability to meet the needs of the global marketplace.”