US logistics company Ceres Global has secured an exclusive option to acquire Canadian commodity provider Delmar Commodities for approximately CAD$16M (US$12M) in cash and the assumption of about CAD$7.6M (US$5.8M) in existing term debt.
Ceres said on 8 July that Delmar would operate as a subsidiary and approximately 55 employees would be integrated into its operational network.
It hoped to close the potential acquisition on or around 1 August.
Ceres’ facilities throughout North America had a total grain and oilseed storage capacity of some 29.7M bushels, World Grain said.
Its core operations are in grain storage, procurement and merchandising of speciality grains and oilseeds such as oats, barley, rye, hard red spring wheat, durum wheat, canola and pulses through its storage and handling facilities in Minnesota, Saskatchewan and Ontario, according to its website.
It has operations in five locations including three sites in Minnesota. Its Savage Riverport terminal is owned and operated as a joint venture with Consolidated Grain and Barge Co, with 9.2M bushels of grain storage, high speed truck and rail receiving capacity, as well as rail, truck, and barge shipping capabilities.
Ceres’ other two locations are in Northgate, Saskatchewan, Canada; and Port Colborne, Ontario, Canada.
Delmar sources, handles and transports grains, oilseeds and oilseed products such as soyabeans, canola, corn, and soyabean oil and meal throughout southern Manitoba and the Prairies.
“We believe the addition of Delmar’s grain assets to be an important first step in adding strategic origination for our core products, while also significantly advancing our portfolio diversification strategy with the inclusion of their soyabean crush, agricultural seed sales and distribution, and birdfeed product lines,” said Ceres CEO Robert Day.