Bunge to expand Canadian grain network with acquisition of North West Terminal
The purchase agreement, announced Sept. 22, is subject to customary closing conditions.
USA – Bunge Global SA has signed an agreement to purchase the grain elevator assets of North West Terminal Ltd. (NWT) near Unity, Saskatchewan, adding one of Western Canada’s largest grain handling facilities to its expanding network.
Founded in 1993 and operational since 1996, NWT is owned by about 1,000 shareholders, most of whom are area farmers.
The company is also part-owner of Alliance Grain Terminal Ltd. (AGT), which manages a 102,000-tonne bulk grain terminal in Vancouver, British Columbia. Additionally, NWT holds shares in Alliance Seed Company Ltd. (ASC).
The site has a total storage capacity of 63,000 tonnes (2.3 million bushels) and is equipped with full cleaning and drying capabilities.
Served by Class I railroads Canadian Pacific Kansas City (CPKC) and Canadian National (CN), the facility can receive grain at up to 30,000 bushels (816 tonnes) per hour across two driveways. It can also load railcars at the same pace, with siding capacity expanded in 2014 to handle 150 cars.
Announced on September 22, the purchase agreement remains subject to customary closing conditions.
If approved, the deal is expected to close in October. Financial terms were not disclosed. The fermentation and distillation facility on-site will remain under NWT’s operation.
Kyle Jeworski, head of Bunge in Canada, said the acquisition represents a strong fit within the company’s network.
“We look forward to integrating this efficient, high-throughput facility into our industry leading grain asset network,” he said.
He added that Bunge firmly believes its operational and logistical expertise, focus on superior service, and targeted future investments in the facility will enable it to reach its full potential for the benefit of its customers.
“Further, we look forward to being an active member in the community as a leading employer and contributor to community investment initiatives,” he said.
Bunge, which operates in more than 50 countries, strengthened its global footprint in July after completing its merger with Viterra. Today, the company runs over 300 grain storage facilities, more than 40 port terminals, and more than 155 processing, refining, and packaging plants.
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