REGINA, SASKATCHEWAN, CANADA — GCM Grosvenor, a global alternative asset management firm, has acquired all the shares of AGT Food and Ingredients Inc.’s shortline rail and bulk handling infrastructure, which includes Mobil Grain Ltd. (MobilGrain). Financial terms of the transaction were not disclosed.

AGT said the transaction includes MobilGrain and its operating subsidiaries: Last Mountain Rail, with 140 kms (87 miles) running from the Regina Plains to Central Saskatchewan, including 160 kms (100 miles) of running rights on CN; Big Sky Rail, with 431 kms (258 miles) running from Central Saskatchewan through West Central Saskatchewan; MobilEx Terminal Ltd., a port and loading facility for grain and potash located in Thunder Bay, Ontario, Canada; and Intermobil, a privately-operated, intermodal terminal located in Regina, featuring CN service to the Atlantic, Pacific and Gulf Coasts and CN’s intermodal terminals. Bulk loading infrastructure includes Saskatchewan facilities in Condie, Aylesbury, Delisle, Dinsmore, Lucky Lake, Beechy, Elrose, Kyle, Eston and Laporte for the receiving of grains, canola and pulses from farmers in the region.

Also as part of the deal, AGT said it has signed a 20-year agreement with MobilGrain to continue to utilize the infrastructure for its global origination and supply chain programs for export.

“AGT is thrilled to enter this partnership with GCM Grosvenor, a key infrastructure investor who wants to hold the infrastructure for the long term, improve and grow it to build on the work that MobilGrain and AGT have done over the past two decades operating these assets,” said Murad Al-Katib, president and chief executive officer of AGT. “With the planned Lake Diefenbaker Irrigation Project adding growth to the already strong Regina Plains, West Central and Central growing regions, there are great opportunities ahead for all involved, including GCM Grosvenor, AGT, CN and farmers and producers who depend on this rail service.

"This sale returns significant capital to AGT, which presently generates over C$3 billion ($2.15 billion) in revenue annually. We will continue building on the strength of our partnership with Fairfax Financial Holdings Ltd. in creating a global agriculture growth story, including expanding our global packaged foods business. The long-term agreement with GCM Grosvenor and MobilGrain means AGT will remain a mainstay in the communities along the railway in which we operate today.”

Matthew Rinklin, managing director of infrastructure at GCM Grosvenor, added, “This transaction underscores Saskatchewan’s essential role in the global economy as a key producer of critical minerals and agricultural products. Integrating MobilGrain’s shortline rail with CN’s network creates significant growth potential, while Intermobil and MobilEx terminals will continue supporting agricultural and potash exports.”