CANADA – Ceres Global, a global agricultural, energy and industrial products merchandising and supply chain company has completed its acquisition of Manitoba, Canada based Delmar Commodities Ltd.
According to Ceres, the acquisition includes 100% of Delmar’s issued and outstanding shares for approximately US$11.44 million (C$15.25 million) in cash paid to Delmar’s shareholders.
The transaction also included the assumption of approximately US$5.7 million (C$7.6 million) in existing term debt, reports World Grain.
In July, Ceres announced that it had secured an exclusive option to acquire Delmar Commodities but had commenced due diligence on a potential acquisition of Delmar in February 2019.
Delmar Commodities is an agricultural processing and supply chain company with four primary business lines: Grain merchandising, soybean crush, birdfeed production and sales.
The company also is the exclusive distributor in western Canada of Legend Seed products under a license and distribution agreement with Legend Seeds, USA.
Robert Day, president of chief executive officer of Ceres said that the acquisition supports the company’s diversification strategy and expansion plan.
“With the completion of this acquisition we have made meaningful progress on our goal to diversify our product lines, add strategic origination capabilities for our core products and expand our geographic footprint in Canada.
“We welcome the talented team at Delmar to Ceres and look forward to working together as we continue to execute on our growth strategy,” Robert said.
Kyle Egbert, vice president and chief financial officer for Ceres added: “part of our stated growth strategy has been to grow our grain origination assets as well as diversify our products.With the addition of Delmar, we make meaningful progress on both of these initiatives.”
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.
Headquartered in Minneapolis, Minnesota, US, Ceres operates five locations, including three sites in Minnesota: Duluth, Minneapolis, and Shakopee.
The company also has operations in Northgate, Saskatchewan, Canada, and Port Colborne, Ontario, Canada.
Ceres also has a 50% interest in Savage Riverport, a joint venture with Consolidated Grain and Barge, a 25% interest in Stewart Southern Railway and a 17% interest in Canterra Seed Holdings Ltd, a Canada-based seed development company.
Ceres’ facilities throughout North America have an aggregate grain and oilseed storage capacity of approximately 29.7 million bushels.
