Viterra Inc. and XL Foods Inc. said Sept. 25 that they have entered into an agreement in which Viterra will acquire the assets of Lakeside Fertilizer, a division of XL Foods and southern Alberta’s largest independent retailer of fertilizer and agricultural chemicals.
The transaction, which closed Sept. 25, includes six retail outlets in Bow Island, Brooks, Claresholm, Medicine Hat, Taber, and Vauxhall, AB.
“This acquisition allows us to further leverage our logistics and distribution network, ensuring that our customers in southern Alberta have the right products at the right time,” said Doug Wonnacott, Viterra’s Agri-products senior vice president. “It is also consistent with our overall strategy to optimize our retail footprint in Western Canada and increase our market share.”
Viterra said the new locations are strategically located in a prime growing region of Alberta and will allow Viterra to sell inputs for traditional crops, as well as high input specialty crops such as sugar beets and potatoes. It said customers will have access to a full range of agri-products including Viterra’s exclusive line-up of proprietary seed and private label crop protection products, along with a variety of custom services.
“We would like to thank the employees, customers and suppliers that have supported the Lakeside Fertilizer business over the years,” said Brian Nilsson, Co-CEO of XL Foods Inc.
Wonnacott said that Lakeside employees, as part of the Viterra team, will continue to provide area customers with expert advice and quality service.
The acquisition will increase Viterra’s total number of retail sites to 259 across Western Canada.
Rabobank International acted as exclusive financial advisor to XL Foods.