News 487 views last update:6 Aug 2012

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 Canadian agri-business.

"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.
· A 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.

Related links:
Agricore United
James Richardson International Limited

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