CANADA – Ceres Global Ag Corp, an agricultural, energy, and industrial products merchandizing and supply chain company, has entered into a deal to purchase a grain elevator and its related assets in Ridgedale, Saskatchewan, Canada from Cargill Limited.
Known as “Nicklen Siding,” the elevator has a capacity of 13,000 mt and offers a variety of services, including fertilizer blending and soil testing, according to Cargill’s website.
“With this 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,” said Robert Day, the president and chief executive officer of Ceres Global, in a statement.
“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.”
Ceres indicated that it plans retain the workers who are currently employed by Cargill at the Ridgedale site.
“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,” Day said.
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 and will be funded with existing working capital. The agreement sees Ceres assume Cargill’s existing grain purchase contracts.
Headquartered in Minneapolis, Minnesota, US, Ceres procures and supplies North American agricultural commodities and value-added products, industrial products, fertilizer, energy products and reliable supply chain logistics services to customers worldwide.
Together with its affiliated companies, Ceres operates 13 locations across Saskatchewan, Manitoba, Ontario and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 30.8 million bushels.
Through its network of commodity logistics centers and team of industry experts, Ceres Global merchandizes high-quality North American agricultural commodities and value-added products and provides reliable supply chain logistics services to agricultural, energy and industrial customers worldwide.
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