Legumex Walker acquires Keystone Grain

Legumex Walker acquires Keystone Grain

Keystone processes and markets a variety of food-grade products, primarily focusing on sunflower and flax products, including bakery sunflower kernels and confectionary sunflower kernels and several varieties of both milled and non-milled flax.

Legumex Walker Inc. announced that it has completed the acquisition of Keystone Grain Ltd., a leading Manitoba-based processor and marketer of sunflowers, flax, specialty crops and organic commodities for $1.28 million in cash and 587,437 in its common shares. In addition, the Keystone vendors received 660,000 warrants at $9.50 per share, which expire two years from the date of closing of the transaction. The acquisition included $4.0 in working capital at Keystone and the assumption of $4.8 million in Keystone long-term debt, as adjusted for debt assumed by the vendors.

"We are thrilled to have completed this transaction and I would like to publicly thank all those at both companies, as well as our advisors, who have worked so diligently and tirelessly to bring this through to fruition," said Joel Horn, President and Chief Executive Officer, Legumex Walker. "I would also like to welcome the Keystone team to the Legumex Walker family. We look forward to pursuing the new opportunities we have as one of North America's largest processors and marketers of sunflowers and related products to the growing bakery ingredients market, as well as opportunities afforded by our entry into the lucrative retail bird food market."

Keystone's assets include a sunflower processing facility (40,000 metric tons annual capacity) and a flax processing facility (11,500 metric tons annual capacity) in Winkler, Manitoba and a bird food processing facility in Winnipeg, Manitoba (11,500 metric tons annual capacity). Keystone processes and markets a variety of food-grade products, primarily focusing on sunflower and flax products, including bakery sunflower kernels and confectionary sunflower kernels and several varieties of both milled and non-milled flax. Keystone also processes and markets custom private label birdfood products and retail wild bird food products, and packs wild birdfood products under the Emerald Farms label for the retail market, including several large North American big box retailers.

Legumex Walker was advised in this transaction by Cormark Securities Inc.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish