Saskatchewan’s North East Terminal has closed a deal to buy local crop input facilities from a joint operation between Cargill and area farmers.
Tri-Way Fertilizers will sell NET its facilities at Foam Lake, Sask., about 90 km northwest of Yorkton, for an undisclosed sum, the two companies announced Wednesday.
The Foam Lake assets include a chemical warehouse, two anhydrous fertilizer vessel tanks, rolling stock and fertilizer application equipment, plus an 1,100-tonne-capacity dry fertilizer storage shed.
“The Foam Lake asset represents a good fit, given North East Terminal’s footprint in this region,” NET general manager Garnet Ferguson said in a release.
NET operates an inland grain terminal and sells fertilizer, chemical and seed at Wadena, about 50 km northwest of Foam Lake. It also already sells fertilizer, chemical and seed at country operations at Kelvington (about 40 km northeast of Wadena) and at nearby Ponass Lake.
Tri-Way, which was formed by Cargill and farmer stakeholders in 1998, still operates three other eastern Saskatchewan facilities, located further south at Balcarres, Abernethy and Leross.
NET noted it has access to new-term debt with its current lender if it decides to finance all or a portion of this acquisition.