GCM Grosvenor acquires AGT Food and Ingredients’ rail and bulk handling infrastructure

CANADA – GCM Grosvenor, a leading global alternative asset management firm, has successfully acquired the entire shareholding of AGT Food and Ingredients Inc.’s shortline rail and bulk handling infrastructure, including its subsidiary, Mobil Grain Ltd. (MobilGrain).

Financial details of the transaction have not been disclosed.

As part of the deal, AGT Food and Ingredients will transfer ownership of MobilGrain’s extensive network, which includes Last Mountain Rail, Big Sky Rail, and multiple terminals vital to the grain and potash industries.

Murad Al-Katib, president and CEO of AGT, expressed enthusiasm about the partnership, highlighting the potential for long-term growth.

 “AGT is thrilled to enter this partnership with GCM Grosvenor, a key infrastructure investor who wants to hold the infrastructure for the long term and build on the work that MobilGrain and AGT have done over the past two decades,” said Al-Katib.

According to him, the planned Lake Diefenbaker Irrigation Project will add growth to the Regina Plains and West Central Saskatchewan, creating tremendous opportunities for all parties involved.

The Last Mountain Rail spans 140 kilometres (87 miles) from the Regina Plains to Central Saskatchewan, with an additional 160 kilometres (100 miles) of running rights on the Canadian National Railway (CN).

Big Sky Rail extends 431 kilometres (258 miles) through West Central Saskatchewan. The infrastructure also includes two key terminals: MobilEx Terminal Ltd. in Thunder Bay, Ontario, and Intermobil, an intermodal terminal located in Regina with CN service connecting to the Atlantic, Pacific, and Gulf Coasts.

MobilGrain’s bulk loading infrastructure across Saskatchewan facilities in Condie, Aylesbury, Delisle, Dinsmore, and other locations will continue to support the receiving of grains, canola, and pulses from local farmers.

AGT has also secured a 20-year agreement with MobilGrain, ensuring continued use of the infrastructure for its global origination and export supply chain programs.

The transaction is a significant step for AGT, which generates over C$3 billion (US$2.15 billion) in annual revenue.

AGT intends to reinvest the capital from this sale into expanding its global agriculture portfolio, particularly its packaged foods business.

Al-Katib emphasized that the long-term agreement with GCM Grosvenor ensures AGT’s ongoing presence in the communities where it operates, reinforcing the company’s commitment to local agriculture and supply chains.

Matthew Rinklin, managing director of infrastructure at GCM Grosvenor, underscored Saskatchewan’s critical role in the global economy, particularly as a producer of agricultural products and minerals.

“This transaction underscores Saskatchewan’s essential role in the global economy as a key producer of critical minerals and agricultural products,” Rinklin stated.

 “Integrating MobilGrain’s shortline rail with CN’s network creates significant growth potential, while Intermobil and MobilEx terminals will continue supporting agricultural and potash exports,” he added.

The deal also guarantees that all employees at the acquired facilities will retain their positions, with GCM Grosvenor committed to maintaining the workforce essential for operating the infrastructure.

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