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CWB acquires another Saskatchewan grain terminal

The Canadian Wheat Board (CWB) has acquired another grain terminal in Saskatchewan as part of its ongoing efforts to become fully self-sufficient by August 2017.

The former Crown corporation announced today it has reached a tentative deal to acquire all of the outstanding shares in Great Sandhills Terminal Ltd. (GST) for $17.4 million.

The acquisition, which still must be approved by GST shareholders, includes a high-throughput grain-handling facility near Leader, Sask., and a majority stake in a shortline railway (Great Sandhills Railway) it owned and operated between Swift Current and Burstall, Sask.

The new deal comes roughly two months after CWB paid $43.2 million to acquire Prairie West Terminal Ltd., a west-central Saskatchewan company with a total of five elevators and 78,000 tonnes of storage capacity.

"Today’s agreement brings together the strong reputations of both companies under one roof," GST chairman Wayne Hittel said in a written statement.

"CWB’s prized international brand and GST’s service excellence are just two of the reasons this acquisition is a win-win for all stakeholders — CWB, GST shareholders, our local community, and all of our farmer-customers that deliver grain to GST now and in the future."

CWB president and CEO Ian White said the two companies have worked well together for many years providing Saskatchewan farmers with marketing options.

"We look forward to providing an even stronger value proposition to farmers as a single company," White said. "This purchase strengthens CWB’s growing network of assets across Western Canada and provides the opportunity for an ongoing farmer ownership stake in GST through our Farmer Equity Plan."

CWB said the GST deal is expected to close before Sept. 1.


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