AGT Foods Divests Shortline Rail and Bulk Handling Infrastructure
AGT Food and Ingredients Inc. has announced the sale of all shares of its shortline rail and bulk handling infrastructure in Mobil Grain Ltd. to GCM Grosvenor, a global alternative asset management firm.
The sale includes MobilGrain and its operating subsidiaries:
Last Mountain Rail, with 140 kms (87 miles) running from the Regina Plains to Central Saskatchewan, including 160 kms (100 miles) of running rights on CN;
Big Sky Rail, with 431 kms (258 miles) running from Central Saskatchewan through West Central Saskatchewan;
MobilEx Terminal Ltd., a port and loading facility for grain and potash located in Thunder Bay, Ontario; and
Intermobil, a privately-operated intermodal terminal located in Regina, SK, featuring CN service to the Atlantic, Pacific and Gulf Coasts and CN’s intermodal terminals.
The bulk loading infrastructure includes facilities in Saskatchewan at Condie, Aylesbury, Delisle, Dinsmore, Lucky Lake, Beechy, Elrose, Kyle, Eston and Laporte for the receiving of grains, canola and pulses from farmers in the region.
To ensure that the rail and bulk infrastructure included in this sale continues to grow and improve for producers and communities along the line and corridor, AGT says it has signed a 20-year agreement with MobilGrain to continue to utilize this infrastructure for its global origination and supply chain programs for export.
Financial terms and details of the sale and subsequent agreement have not been disclosed. The transaction is subject to regulatory approvals and customary closing conditions. It’s expected to close in late 2024 or early 2025.
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