September 1, 2011
Coop federee acquires Ontario grain merchandising firm
La Coop federee, Quebec''s federation of ag co-operatives, has made a deal to develop its market reach more by purchasing a southwestern Ontario grain marketing company.
Coop federee on Monday (Aug 29) announced it''s completed a deal it signed in June to buy the shares of Grower Direct Exports, based at Mitchell, about 55 km north of London.
Montreal-based Coop federee, which represents 85 agricultural and agrifood co-operatives in its home province, didn''t disclose the deal''s financial terms, other than to say it''s retroactive to July 1.
"This acquisition will permit La Coop federee to maximize potential synergies with its Agromart partners, a provincial leader in crop inputs sales," Simon Baillargeon, general manager of the co-op''s grain merchandising department, said.
La Coop bought a stake in the Agromart retail chain, which includes 16 outlets in Ontario, when it bought Agronomy Co. of Canada from US ag co-ops Land O''Lakes and CHS in 2008.
The Grower Direct sale also gives Coop federee access to a grain storage facility at Stayner, Ont., about 40 km west of Barrie, through the facility operator''s existing contract with Grower Direct, Baillargeon said.
Furthermore, the sale allows Coop federeeto add "three respected and seasoned (grain) traders to its ranks," he said.
Coop CEO Claude Lafleur said the sale complements the organization''s expansion strategy outside Quebec in a bid "to remain a leader in grain merchandising.
"While remaining faithful to its core values, this expansion strives to deliver rapid growth, and improve the service offering to our Coop network and partners in the feed, industrial and export sectors," he said.