March 1, 2007

Agricore and JRI to start mega grain company

Agricore United and James Richardson International Limited (JRI) has ventured to create Canada's largest grain company and become a leading global Canadian agribusiness. 

Wayne Drul, chairman of Agricore United Board of Directors said the venture will produce grain shipments in excess of 14 million tonnes and will establish its presence in 50 countries.

JRI Chairman Hartley Richardson stressed that the combination of these two giant firms will be a "true Canadian champion" that has a broad mix of businesses across Canada and the scale, management expertise and financial strength to compete globally. 

The combination of Agricore United and JRI will create:

• A company with diversified earnings from grain handling, crop production services, livestock services, oilseed processing and financial services.
   
• Combined assets strategically located throughout both western and eastern Canada, as well as in the United States and Japan.
   
• Significant synergies, currently estimated to be about CAN$62 million per year. Expected net integration and one-time transaction costs are estimated to be about CAN$31 million.
   
• A financially strong company with pro forma gross sales of about CAN$5 billion for the trailing twelve months ending January 31, 2007.
   
• A company with the size and financial strength to take advantage of significant growth opportunities.