An inland grain terminal and three crop input supply businesses—about an hour south of Saskatoon—are being sold, pending shareholder approval.
Gardiner Dam Terminal (GDT) has reached a deal with Viterra, which already owns 50 percent of the grain handling facility at Strongfield. The other half is owned by 225 shareholders, who are mostly farmers or retired farmers. Those shares were purchased nearly 20 years ago during a local campaign to build the concrete grain handling facility on the CP rail line. The elevator has a currently handling capacity of just over 27,000 metric tonnes.
Viterra will become sole owners of the grain terminal. The grain company will then sell the three GDT AgServices crop input retail outlets at Tullis, Broderick and Strongfield. The buyer is Riverbend Co-op based in nearby Outlook, SK. The price of that transaction has not been disclosed.
“This is an exciting opportunity for our Co-op to significantly increase our presence in the ag sector in central Saskatchewan,” said Greg Sarvis, General Manager of Riverbend Co-op. “GDT Ag Services is a thriving business with an excellent reputation.”
GDT expects to receive between $27.9 million and $30.5 million in aggregate proceeds. From that, each GDT shareholder is estimated to receive between $1,175 and $1,275 per share.
“The (GDT) Board has been working diligently over the past year to allow our shareholders a way to capture the value of 18 years of success and prosperity,” said Ron Bartel, GDT Board Chair.
The proposal will be voted on during a public shareholders meeting on December 13. A two-thirds majority of shares are required to approve the sale. If all conditions are met, the transaction is expected to close on December 19.
The 24 GDT employees will be offered jobs with either Viterra or Riverbend Co-op.
You can check out the GDT and Riverbend Co-op news releases at: