Winnipeg-based special crops marketing company Legumex Walker has cleared its final hurdle in winding down operations, announcing on Tuesday it has handed over its 84 percent stake in Pacific Coast Canola and PCC’s troubled crush plant in Washington.
The divestiture arrangement sees Glencore increase its ownership stake in PCC from 16 percent to 50 percent for no cash consideration, while McKinstry Holdings, an affiliate of Industrial Construction Group, receives the other 50 percent. In exchange, Industrial Construction Group has released its lien against the PCC facility at Warden, Washington.
Regina-based Viterra — a subsidiary of Glencore — also announced on Tuesday it has entered into a supply and marketing agreement with PCC.
“This is a great opportunity for our company, allowing us to expand our processing capacity, build on the success we’ve achieved at our crush plant in Ste. Agathe, Manitoba and complement our recent acquisition of TRT-ETGO in Becancour, Quebec,” said Kyle Jeworski, Viterra’s President and CEO for North America, in a statement. “We look forward to helping PCC achieve its full potential, through delivery of consistent seed supply, expansion of our existing relationships with thousands of canola producers to include local PCC market producers, our focus on continuous improvement, and connections with domestic and international end users.”
PCC’s facility, which opened in 2013, is the largest expeller-press canola processing facility in North America and the only commercial canola processor west of the Rocky Mountains. It has capacity to crush 1,100 metric tonnes of canola per day and was designed to produce canola oil for non-GMO, Halal and Kosher markets. Meal products from the plant are sold into the dairy and livestock feed markets.
Legumex Walker completed the sale of its special crops business to The Scoular Company in late November for C$94 million, plus C$71.5 million, the amount of net working capital at closing. The company’s shares were delisted from the TSX on December 31.