Ceres Global Ag is expanding its presence north in Saskatchewan with a deal to acquire Cargill’s “Nicklen Siding” grain elevator and related assets, approximately 30 km north of Tisdale, Sask.
With rail service from CN Rail and 13,100 metric tonnes of storage capacity, the Nicklen Siding location is Cargill’s smallest primary elevator in Saskatchewan, according to Canadian Grain Commission figures. Cargill also operates a crop input business at the same location.
The sale to Ceres is expected to close on or about August 31, 2020, subject to the regular closing conditions. The agreement sees Ceres assume Cargill’s existing grain purchase contracts.
“With the acquisition of the Nicklen Siding elevator we take another meaningful step in our broader strategy to increase core product origination directly from growers in important regions” says Robert Day, president and Chief Executive Officer at Ceres Global. “The northern Saskatchewan region is critical for Ceres due to the highly efficient grower community, its product mix and competitive access to our terminal assets and customers. Lastly, we are extremely pleased to have the opportunity to retain Cargill’s talented team at the Nicklen Siding elevator and we are excited to welcome them to our Ceres Global family.”
Terms of the deal were not immediately disclosed.
Headquartered in Minneapolis, Minnesota, Ceres and its affiliated companies currently have operations at 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota, with storage capacity of nearly 31 million bushels.
In Western Canada, that includes the Northgate Terminal, which has access to the BNSF railway at the Canada-U.S. border at Northgate, Saskatchewan, and Manitoba-based Delmar Commodities, which was acquired by Ceres last summer. The company also holds as a 25 per cent stake in Stewart Southern Railway, a short-line railway located in southeast Saskatchewan, and a 17 per cent interest in Canterra Seed.
Ceres also owns grain-handling facilities at Port Colborne, Ontario, and Duluth, Minneapolis, and Shakopee, Minnesota.