Canadian agribusiness Parrish & Heimbecker Ltd. (P&H), Winnipeg, Man., announced in early September that it has acquired ten Louis Dreyfus Company (LDC) locations in Western Canada to “significantly expand” its grain and crop input offerings across new geographies. Financial terms of the deal were not disclosed.
The new locations include four in Saskatchewan (Tisdale, Wilkie, Alberdeen, and Kegworth), three in Alberta (Joffre, Lyalta, and Rycroft), two in Manitoba (Rathwell and Virden), and a final site in Dawson Creek, B.C. P&H said the acquisition will provide farmers with “increased access to more competitive offerings in grain trading, handling, and merchandising, as well as full-range crop input products backed by leading agronomic solutions.”
“This is an incredibly exciting day as P&H continues its investment in assets and terminals to provide farmers with local, best-in-class products and support, backed by a growing national grain asset network,” said CEO John Heimbecker on Sept. 4. “This is a win-win for farmers seeking a more competitive grain and crop inputs offering, as well as for the stakeholders within P&H and LDC who work to support them.”
Family-owned P&H said it has invested heavily in assets and terminals to create a National Grain Asset Network, including new grain elevator construction and export terminal expansions and upgrades. The LDC acquisition adds to its existing footprint in Canada, which includes more than 60 locations comprising grain elevators and terminals, retail sites, feed and flour mills, offices, and satellite facilities. The company has 1,500 employees across Canada.
“Providing farmers with increased variety and more powerful combinations of crop input solutions is more important than ever as we look to drive yields and overall performance,” Heimbecker said. “Acquiring geographically strategic assets from a global leader like LDC makes us better and stronger by an order of magnitude.”
The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and customary closing conditions. According to The Western Producer, the acquisition will make P&H the third largest grain handler in Canada, behind Viterra and Richardson International. LDC will continue its presence in Canada with a grain terminal in Port Cartier, Quebec, and a canola crushing plant and refinery in Yorkton, Sask. LDC’s corporate headquarters in Canada is located at Virden, Man.