Legumex Walker Inc. says it is acquiring Keystone Grain Ltd., Canada's largest processor and marketer of sunflowers and sunflower products.
Financial terms of the purchase of Keystone, which also deals in flax, specialty crops and organic commodities, were not disclosed. However, Legumex said that pending completion of the acquisition, the two companies have agreed to co-ordinate the sourcing of feedstock and selling of products. Both companies are based in Manitoba.
"Keystone is a highly strategic addition to our U.S.-based sunflower processing assets and significantly enhances our ability to service the growing demand for sunflower and flax products in the bakery ingredients market," said Legumex president and CEO Joel Horn. "Available processing capacity at our existing sunflower facilities will allow us to capitalize on meaningful growth opportunities inherent in the Keystone business."
Horn said the addition would also further diversify Legumex's product offerings through entry into the retail bird food market as well as provide cross-selling opportunities.
Keystone's assets include a sunflower processing facility and a flax processing facility in Winkler, Man., and a bird food processing facility in Winnipeg, with a combined capacity of 62,000 tonnes annually. Legumex Walker is a processor and merchandiser of pulses and other special crops and canola products, with 11 processing facilities in the Prairie provinces, the U.S. Midwest and China.
