Regina, Saskatchewan, June 22, 2006 - Can-Oat Milling Inc., a wholly owned subsidiary of Saskatchewan Wheat Pool Inc., today announced the acquisition of the ConAgra Oat Milling facility located in Barrhead, Alberta. The transaction closed today.
Constructed in 1989, the full service facility is organically certified and processes 25,000 metric tonnes of finished oat products such as oat flakes, oat flour and oat bran as well as barley flakes and flour, pot barley and pearl barley. As a result of this acquisition and Can-Oat's current expansion of its Portage la Prairie plant, Can-Oat's total milling capacity will exceed 375,000 metric tonnes annually.
Karl Gerrand, President of Can-Oat Milling said, "We are extremely pleased to complete this acquisition as part of our strategic growth initiatives. The Barrhead facility will bring on-line Can-Oat's third milling operation and its second finishing facility capable of manufacturing flakes, flour and bran. The addition of this mill complements our current expansion project in Manitoba by facilitating immediate entry into the growing organic oat market, while at the same time competitively positioning Can-Oat to supply the west coast and new offshore export markets."
The acquisition also supports product expansion for Can-Oat, which to date has been solely focused on oat processing. The Barrhead facility processes a number of barley-based food products, allowing Can-Oat to expand its product offerings to new and existing customers. Geographical expansion into Alberta improves Can-Oat's strategic position, diversifies its raw material sourcing, and offers opportunities to leverage technologies, expertise and efficiencies throughout its network of processing facilities across Western Canada.
Karl Gerrand, President of Can-Oat Milling added, "Our analysis has been thorough and we are confident that this acquisition will drive value for our organization. It will further enhance our competitive position to take advantage of the increased growth we are seeing in the consumption of grain-based products in today's health conscious consumer market. We look forward to welcoming the Barrhead team into the Can-Oat family. Together, I am confident we will build on Can-Oat's success of consistently providing high quality oat ingredients and value that customers can depend on."
Can-Oat is the largest industrial oat processor in the world. Can-Oat Milling operates two state-of-the-art oat milling facilities in Portage la Prairie, Manitoba and one in Martensville, Saskatchewan. The company is a leading supplier of primary and finished food ingredients, including a full range of oat-based products like old fashioned flakes; quick cooking oats; baby oat flakes; oat bran; oat flour; whole oat groats and steelcut oat groats.
Can-Oat Milling Inc., the general partner of Can-Oat Milling Limited Partnership, is wholly owned by Saskatchewan Wheat Pool Inc., a publicly traded agribusiness headquartered in Regina, Saskatchewan. Anchored by Prairie-wide grain handling and agri-products marketing network, the Pool channels Prairie production to end-use markets in North America and around the world. These operations are complemented by agri-food processing and strategic alliances that allow the Pool to leverage its pivotal position between Prairie farmers and destination customers.