AGT Food and Ingredients Inc. ("AGT" or the "Company") (TSX:AGT) today announced that it has entered into a minority investment, along with Fairfax Financial Holdings Limited ("Fairfax"), and Missinippi Rail Limited Partnership, a consortium of First Nations and communities in Northern Manitoba, to acquire and operate the Hudson Bay Railway ("HBR"), Churchill Marine Tank Farm and Port of Churchill facilities from Omnitrax Inc. The transaction includes multi-year Contribution Agreements to support the share purchase, repairs of the port and rail and operations with the Government of Canada.
Fairfax and AGT will operate HBR and the Port facilities under a 99-year operating agreement. Financial details of the transaction were not disclosed. The acquisition will not obligate AGT to incur any material expenditure, nor will the acquisition result in AGT incurring any material additional to indebtedness at acquisition.
"Entering into this transaction completes discussions which started back in late 2017 with the Government of Canada, the First Nations and communities in the North and Fairfax to reconstruct and operate the Churchill line. Though the investment isn't material for AGT from a capital expenditure perspective, we feel the ability to add further port access is important for our long term plan as the recovery of markets for Canadian agricultural products continues in the coming years," said Mr. Murad Al-Katib, President and CEO of AGT.
AGT Food and Ingredients Inc. Profile
AGT Food and Ingredients Inc. (AGT) is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands, Spain, Switzerland and India and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.
Source: AGT Food and Ingredients Inc.