MINNEAPOLIS, MINNESOTA, US — Ceres Global Ag has sold its 17% stake in Canterra Seeds Holdings Ltd. to United Farmers of Alberta Co-operative Ltd. (UFA) in a share purchase agreement valued at C$2.5 million.
Minneapolis-based Ceres said it disposed of 1,286,187 Class A common shares of Canterra Seeds pursuant to the agreement dated July 2 for cash consideration of approximately C$1.94 per Class A common share. Immediately following the disposition, Ceres held zero Class A common shares of Canterra Seeds.
“Aligned with our strategy to streamline our asset footprint, the disposition of Canterra Seeds allows Ceres to continue focusing on our core business while improving efficiencies,” said Carlos Paz, president and chief executive officer of Ceres. “This transaction with Canterra Seeds and UFA will serve as a positive catalyst for Western Canadian agriculture, and we're pleased to continue executing our fundamental strategy to the benefit of all stakeholders.”
Headquartered in Calgary, Alberta, Canada, UFA operates an extensive commercial and retail business supplying petroleum, crop, livestock and building products and services. Winnipeg, Manitoba, Canada-based Canterra Seeds offers a portfolio of cereals, pulses and oilseeds specifically developed for Western Canada.
Ceres is a global agricultural, energy and industrial products merchandising and supply chain company. Together with its affiliated companies, operates 11 locations across Saskatchewan, Manitoba, Ontario, and Minnesota with an aggregate grain and oilseed storage capacity of approximately 29 million bushels. Ceres also owns membership interests in three agricultural joint ventures that have an additional storage capacity of about 15.9 million bushels.
