WINNIPEG, MANITOBA, CANADA — Legumex Walker Inc., one of the largest processors of special crops and pulses in Canada, said on March 16 that it is considering strategic alternatives including strategic financing, merger or other business combination, sale of the company, or a portion of its business.
The board and management of the company said the share price has not been reflective of the fundamental value inherent in the company and the board has determined that it is timely to review the company's alternatives in light of its strategic shift to the high-value specialty food ingredient market.
The company has established a Special Committee composed of independent directors to oversee the strategic review process.
“Our platform is truly unique, with significant strategic value, and we believe there are potential opportunities to crystallize significant value for shareholders. We have received inquiries from a number of qualified parties that are interested in exploring various transactions with us in certain of our markets, including the specialty food ingredient market, and we expect that this process will unlock this value and allow the company to fully capitalize on these opportunities,” said Bruce Scherr, chairman of the board.
Joel Horn, president and chief executive officer, said the company is aggressively pursuing opportunities in specialty processing. It is expanding its high-oleic Omega-9 canola oil with Dow AgroSciences Canada and its non-GMO canola oil and meal programs with The Scoular Company.
“Additional higher-margin products that we are discussing with potential partners include those derived from both canola and special crops, which would drive growth and profitability within both of our operating segments,” Horn said.
Scherr will be chairing the Special Committee of the board. Altacorp Capital Inc. and Borden Ladner Gervais, the company's financial and legal advisors, respectively, are assisting the Special Committee in a comprehensive analysis of potential alternative transactions.
A virtual data room will be established and made available starting at the end of March to qualified parties upon execution of a standard non-disclosure agreement.
Although the company has initiated a strategic review process, there is no certainty that any transaction or alternative will be undertaken. The company has not set a definitive schedule to complete its evaluation and, notwithstanding the above-mentioned alternatives, no decision on any particular alternative has been reached at this time.
The company also announced that Rosemary Brisson has accepted the position of chief financial officer. The company conducted a thorough search process with an external recruiting firm, and after considering various highly-qualified candidates, decided Brisson, the company’s corporate
cntroller for the past two years, was most qualified for the position.
“I am excited to have Rosemary join our C-Suite team,” said Horn. “Her knowledge, experience, rigor and discipline are exactly what we need at this point in our company’s growth.”
The company also announced the resignation of Martin Thrasher and Robert Beutel from its board of directors.