Pulse crop processing firm Alliance Grain Traders has signed a letter of intent to buy Pulse Depot, a Rosetown, Sask. pulse and special crop processor.
Terms of the deal weren’t disclosed in Alliance’s announcement Tuesday, other than to say that Pulse Depot’s shareholders will be able to decide whether to sell all their outstanding shares or to sell all the business and assets outright.
Pulse Depot won’t be the Regina income fund’s only business in Rosetown, about 110 km southwest of Saskatoon. The company already operates Rosetown’s only other pulse processing plant as part of its Saskcan Pulse Trading subsidiary.
“Rosetown and the surrounding area is emerging as a growth area for both
red and green lentils,” said Alliance CEO Murad Al-Katib in a release Tuesday.
Pulse Depot, whose business focuses on lentils, canary seed, peas and chickpeas, is “well-located to capitalize on rail freight options with Canadian National Railway (CN), which is expected to make more transport capacity available” to Alliance, he said.
The deal between the two companies was negotiated at arm’s length and is expected to close on or about Aug. 1, Alliance said in its release.
Alliance, formerly known as the Agtech Income Fund, operates six processing plants that clean, split, sort and bag pulses and specialty crops for export markets. Its holdings include Saskcan Pulse Trading, with plants at Regina and Rosetown; Saskcan Horizon, at Aberdeen, Sask.; United Pulse Trading of Williston, N.D.; and Australia Milling Group, which processes pulses at Horsham in Australia’s southeast.