February 22, 2007

Agricore United and JRI merge to create global agri-business

Agricore United and James Richardson International Limited (JRI) have agreed to combine to create Canada's largest grain company and a leading global Canadian agri-business, a joint release said Wednesday (Feb 21).

Under the proposal, Agricore United shareholders will receive C$6.50 in cash and 0.509 shares of the combined company for each limited voting common share.

Holders of Series A convertible preferred shares of Agricore United will receive US$24.00 in cash per share. The Board of Directors of Agricore United will recommend that shareholders accept the offer from JRI.

"Today marks a significant development in the history of these two companies," says Wayne Drul, Chair of the Agricore United Board of Directors. "Agricore United's agricultural roots go back to 1906, and JRI is currently celebrating its 150th anniversary. With our combined heritage, expertise and reputation for excellence in this industry, the merger of these two organisations offers an outstanding agri-business solution for shareholders, customers and employees."

The combined company, Richardson Agricore Limited, will be a true Canadian champion, with a broad mix of businesses across Canada and the scale, management expertise and financial strength to compete globally, said JRI Chairman, Hartley Richardson.

"The combined company will be well-positioned to create significant value for its shareholders and connect its customers to even greater market opportunities than we can today," Richardson said.