Agricore and JRI start mega grain company
Agricore United and James Richardson International Limited ("JRI") have
agreed to combine to create Canada's largest grain company and a leading global
"This is a significant development in the history of these two companies,"
says Wayne Drul, Chair of the Agricore United Board of Directors. "Agricore
United's agricultural roots go back to 1906, and JRI is currently celebrating
its 150th anniversary. "The combined company, Richardson Agricore Limited, will
be a true Canadian champion, with a broad mix of businesses across Canada and
the scale, management expertise and financial strength to compete globally,"
said JRI Chairman, Hartley Richardson.
The combination of Agricore United
and JRI will create:
· Canada's largest grain
company with annual grain shipments in excess of 14 million tonnes, and an
established presence in 50 countries.
· A company
with diversified earnings from grain handling, crop production services,
livestock services, oilseed processing and financial services.
· Combined assets strategically located throughout both
western and eastern Canada, as well as in the United States and Japan.
· Significant synergies, currently estimated to be about
CAN$62 million per year. Expected net integration and one-time transaction costs
are estimated to be about CAN$31 million.
financially strong company with pro forma gross sales of about CAN$5 billion for
the trailing twelve months ending January 31, 2007.
A company with the size and financial strength to
take advantage of significant growth opportunities.
James Richardson International Limited
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