Legumex Walker Gauging Interest in Sale or Merger

The board of directors for one of Canada’s largest processors of special crops and pulses is considering its strategic options, including merging with another entity or selling the company.

In an announcement made Monday, Legumex Walker Inc.’s board and management say they believe the share price for the company “has not been reflective of the fundamental value inherent in the company.”

“We have received inquiries from a number of qualified parties that are interested in exploring various transactions with us in certain of our markets, including the specialty food ingredient market, and we expect that this process will unlock this value and allow the company to fully capitalize on these opportunities,” said Bruce Scherr, LWI board chair in the statement.

Scherr will serve as the chair of a special committee established to oversee the company’s strategic review. According to the announcement, “alternatives may include, but are not limited to a strategic financing, merger or other business combination, sale of the company or a portion of the company’s business or assets or any combination thereof.” No definitive timeline has been established, and the company says it likely won’t make any further announcements unless the board has approved a transaction.

Based in Winnipeg, Legumex Walker and its subsidiary Keystone Grain own 15 processing facilities in Western Canada, the U.S. Midwest and China. They produce food and feed ingredients from sunflowers, flax, canary seed, lentils, peas, beans and chickpeas. The company also owns 84 percent interest in Pacific Coast Canola, a canola processing plant in Washington. Legumex Walker was formed in 2011 after the merger of St. Jean, Man.-based Roy Legumex and Walker Seeds of Tisdale, Saskatchewan.

Legumex Walker stock value (source: Google Finance)

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