Ontario, January 8, 2009 – Upon the conclusion of a buy-sell agreement, which was submitted last October, La Coop fédérée is announcing the legal acquisition of Agronomy Company of Canada Ltd (ACC) shares, an equal partnership joint venture with Land O’Lakes and CHS. The financial terms of the agreement however have not been disclosed.
The deal has been in effect since December 31, 2008 and notably includes the acquisition of the ACC head office, grain assets located in Belton, Ontario, and Wellburn Agromart Limited, an agricultural subsidiary located in Wellburn, Ontario.
The agreement further includes:
Ownership in 20 Agromart retail outlets located throughout four of Canada’s eastern provinces and operated as a joint between ACC and independent business partners;
Indirect holding in companies members of the same group serving Agromart businesses, including Agromart Terminals, Inc. and Agromart Processing Company, Inc.
“By becoming a major player in the distribution of plant production input across eastern Canada, by integrating our partners’ expertise and by improving La Coop fédérée’s results, this transaction allows La Coop network to better its member producers’ competitive position”, stated Mr. Denis Richard, president of La Coop fédérée.
This ambitious transaction will enable La Coop fédérée to expand its playing field as it assures itself a firm presence in Quebec, Ontario and the Maritimes. Consequently, this acquisition will bring forth greater profitability.
As part of its development plan, this initiative falls into the company’s design for expansion as it intends to gain market share outside Quebec and secure a more attractive buying position as well as replicate its sales in the plant production field.
Information:
Martin Scallon, Manager Communications, Public Affairs and Media Relations –
La Coop fédérée Office: 514 858-2244 —
Cellular: 514 247-8509
Email: martin.scallon@lacoop.coop
