MINNEAPOLIS, MINNESOTA, US — Ceres Global Ag Corp. has completed the sale of its Port Colborne facility in Ontario, Canada, to London Agricultural Commodities (LAC) for $4 million.
Ceres said that it plans to use the proceeds from the sale, which was finalized Feb. 17, to execute against its broader strategy to increase core product farmer-direct origination from key growing regions while optimizing capital structure by paying down term debt. All former Ceres employees at the terminal will transition to LAC.
“The sale of the Port Colborne facility further enhances Ceres’ strategic partnership with London Agricultural Commodities and aligns with our long-term strategy of optimizing our footprint around our core products and the locations where we operate,” said Carlos Paz, chief executive officer of Ceres.
Ceres is headquartered in Minneapolis, Minnesota, US, and together with its affiliated companies, operates 11 locations across Saskatchewan, Manitoba, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 29 million bushels.
In 2019, Ceres entered into an agreement with LAC to provide storage and handling services from its Port Colborne export grain elevator. The majority of the elevator is used for storing and handling corn, soybeans, wheat and other products for LAC.
“Supporting the farming sector in Ontario has always been a priority for LAC,” said Richard Smibert, president of London Agricultural Commodities Inc. for LAC. “This strategic move to take ownership of a facility we have previously leased further demonstrates our commitment to the industry and exercises our ability to efficiently plan for more internationally bound cargo shipments.”
