Viterra, Canada's biggest grain company is continuing its expansion into the
southern US feed milling industry.
Viterra Inc. said that Unifeed Hi-Pro Inc., a wholly owned subsidiary of
Viterra doing business as Hi-Pro Feeds, has signed a definitive purchase and
sale agreement for certain assets of Gore Bros., Inc. and Gore's Trucking, Inc.
in the US.
The companies, run by the Gore family of Texas for about 60
years, will sell their feed mills at Clovis, N.M., about 175 km northeast of
Roswell, and at Comanche, Tex., about 250 km southwest of Dallas. The deal does
not include the Gores' retail outlets.
Funded through current operating
cash flows, the total cost of the transaction is approximately US$24.2 million
including working capital.
The Regina, Saskatchewan grain company said
it expects the EBITDA (earnings before income, taxes, depreciation and
amortization) of its livestock feed and services division to rise by about 20
per cent through this deal, "after synergies." Hi-Pro already runs several mills
in Texas, New Mexico and Oklahoma.
Formed through the combination of
Saskatchewan Wheat Pool and Agricore United on May 29, 2007, Viterra is Canada's
leading agri-business, with expected annual sales of approximately $4 billion.
The company has extensive operations and distribution capabilities across
Western Canada, and with operations in the United States and Japan.
new company is diversified into sales and services of crop inputs and equipment,
grain handling and marketing, livestock feed and services, agri-food processing
and financial products. These operations are complemented by value-added
businesses and strategic alliances which allow Viterra to leverage its pivotal
position between Prairie farmers and destination
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