Weyburn Inland Terminal’s (WIT) board of directors has unanimously accepted an offer from Parrish & Heimbeker to purchase the company. The purchase agreement is subject to court approvals and the approval of two-thirds of the votes cast by shareholders present in person or by proxy at the special meeting of shareholders. The sale is also subject to customary closing conditions for a transaction of this nature, including receipt of all regulatory approvals, and is expected to close before March 31, 2014.
The agreement “meets its two previously stated key objectives of maximizing value and liquidity for WIT shareholders, and providing a strong competitive environment for WIT’s customers as the Company’s business environment continued to evolve,” the company says in a press release. The connection with P&H’s export markets and large base of Canadian flour mills will provide a strong, local competitive option for farm customers, WIT’s board says.
“Parrish & Heimbecker is a well-respected, Canadian family-owned business with over 105 years of experience in the Canadian agri-food industry. We believe P&H, with its strong position as Canada’s second largest flour miller consuming over 1 MMT of wheat annually, its 32 line elevators spread across Canada, its supply chain management for logistics through 8 terminal locations on both the west coast and through the Great Lakes / St. Lawrence Seaway, as well as participation in both food and feed manufacturing will be the perfect partner for the next chapter of WIT’s story and a great addition to the Weyburn community” said Rob Davies, CEO of WIT. “The Board of Directors of WIT believes that this agreement is highly attractive to all stakeholders. It offers shareholders a substantial premium and a fully-funded all cash offer. It also brings in a large Canadian operator with an outstanding track record and international export capabilities, ensuring the success of WIT and the local producer community for years to come.”
“We see tremendous potential in WIT and are excited to announce this partnership with south-eastern Saskatchewan producers,” commented John Heimbecker, Vice President of P&H. “WIT will fit very well within P&H’s existing network of grain assets, and the level of service the WIT team provides across its grain, crop inputs, livestock feed and special crops businesses will be welcomed within the P&H family. We expect the proposed acquisition to be beneficial both to producers and the Weyburn community.”
Each member of WIT’s Board and its CEO have entered into voting and support agreements pursuant to which they have agreed to vote their WIT shares in favour of the Transaction.