Cargill Ltd. has signed a deal to take full ownership of Terminal 22, a farmer-owned inland grain terminal in southeastern Saskatchewan.
An offer from the Canadian wing of the U.S. grain and agri-food giant was accepted by a “large majority” of the 650 farmer members of T22 Holdings Ltd. at a recent shareholder meeting, Cargill said in a release dated Saturday.
T22 and Cargill expected to close the deal sometime around the end of October, the two companies said. Terms of the deal were not disclosed, other than that crop input products will continue to be offered by Tri-Way Fertilizer at the T22 facility.
Named for its location on Highway 22, the 10-year-old facility at Balcarres, Sask., about 90 km northeast of Regina, has about 32,000 tonnes of grain storage capacity and employs eight full-time staff.
T22’s relationship with Cargill extends back to June 2006, when they signed an operating and management agreement giving Cargill “full managerial responsibilities” for the facility.
“The performance of the T22 operation over the past 28 months under the management operating agreement has clearly demonstrated this operation’s potential to enhance service to grain producers in the region,” said James Mowbray, manager of Cargill AgHorizons’ Qu’Appelle Valley Farm Service Group region, in Cargill’s release Saturday.
“We are very pleased by this development and the overwhelming support of our shareholders in voting to help ensure the sustainability of this operation,” said T22 chairman Larry Schultz in the same release.