AGT Food and Ingredients Inc. Announces Sale of Shortline Rail and Bulk Handling Infrastructure; Partnership with GCM Grosvenor and Mobil Grain Ltd.
AGT Food and Ingredients announced the sale of its shortline rail and bulk handling infrastructure, MobilGrain, to GCM Grosvenor (NASDAQ: GCMG). The assets include Last Mountain Rail (140 km), Big Sky Rail (431 km), MobilEx Terminal in Thunder Bay, and Intermobil terminal in Regina, along with multiple bulk loading facilities in Saskatchewan. AGT signed a 20-year agreement with MobilGrain to continue utilizing this infrastructure for its global origination and supply chain programs. The transaction, expected to close in late 2024 or early 2025, will provide significant capital return to AGT, which currently generates over $3 billion in annual revenue.
AGT Food and Ingredients ha annunciato la vendita della sua infrastruttura ferroviaria e di gestione del carico all'ingrosso, MobilGrain, a GCM Grosvenor (NASDAQ: GCMG). Gli asset includono Last Mountain Rail (140 km), Big Sky Rail (431 km), il Terminal MobilEx a Thunder Bay e il terminal Intermobil a Regina, insieme a molteplici strutture di caricamento all'ingrosso nel Saskatchewan. AGT ha firmato un contratto di 20 anni con MobilGrain per continuare a utilizzare questa infrastruttura per i suoi programmi globali di approvvigionamento e catena di fornitura. La transazione, prevista per concludersi tra la fine del 2024 e l'inizio del 2025, fornirà un significativo ritorno di capitale ad AGT, che attualmente genera oltre 3 miliardi di dollari di fatturato annuale.
AGT Food and Ingredients anunció la venta de su infraestructura ferroviaria y de manejo de carga a granel, MobilGrain, a GCM Grosvenor (NASDAQ: GCMG). Los activos incluyen Last Mountain Rail (140 km), Big Sky Rail (431 km), el Terminal MobilEx en Thunder Bay y el terminal Intermobil en Regina, junto con múltiples instalaciones de carga a granel en Saskatchewan. AGT firmó un acuerdo de 20 años con MobilGrain para continuar utilizando esta infraestructura para sus programas globales de origen y cadena de suministro. La transacción, que se espera cierre a finales de 2024 o principios de 2025, proporcionará un retorno de capital significativo a AGT, que actualmente genera más de 3 mil millones de dólares en ingresos anuales.
AGT Food and Ingredients는 단기 철도 및 벌크 처리 인프라인 MobilGrain을 GCM Grosvenor (NASDAQ: GCMG)에 판매한다고 발표했습니다. 자산에는 Last Mountain Rail (140 km), Big Sky Rail (431 km), Thunder Bay의 MobilEx 터미널 및 Regina의 Intermobil 터미널과 Saskatchewan의 여러 벌크 로딩 시설이 포함됩니다. AGT는 MobilGrain과 20년 계약을 체결하여 이 인프라를 글로벌 원산지 및 공급망 프로그램에 계속 활용하기로 했습니다. 2024년 말 또는 2025년 초에 마감될 것으로 예상되는 이번 거래는 AGT에 상당한 자본 수익을 제공할 예정이며, 현재 연간 매출이 30억 달러 이상입니다.
AGT Food and Ingredients a annoncé la vente de son infrastructure ferroviaire courte et de manutention en vrac, MobilGrain, à GCM Grosvenor (NASDAQ: GCMG). Les actifs comprennent Last Mountain Rail (140 km), Big Sky Rail (431 km), le terminal MobilEx à Thunder Bay et le terminal Intermobil à Regina, ainsi que plusieurs installations de chargement en vrac en Saskatchewan. AGT a signé un accord de 20 ans avec MobilGrain pour continuer à utiliser cette infrastructure pour ses programmes mondiaux d'origine et de chaîne d'approvisionnement. La transaction, qui devrait être conclue d'ici la fin de 2024 ou au début de 2025, fournira un retour sur capital significatif à AGT, qui génère actuellement plus de 3 milliards de dollars de chiffre d'affaires annuel.
AGT Food and Ingredients gab den Verkauf seiner kurzen Eisenbahn- und Bulk-Handling-Infrastruktur, MobilGrain, an GCM Grosvenor (NASDAQ: GCMG) bekannt. Die Vermögenswerte umfassen Last Mountain Rail (140 km), Big Sky Rail (431 km), das MobilEx-Terminal in Thunder Bay und das Intermobil-Terminal in Regina sowie mehrere Bulk-Ladestationen in Saskatchewan. AGT unterzeichnete einen 20-jährigen Vertrag mit MobilGrain, um diese Infrastruktur weiterhin für seine globalen Beschaffungs- und Lieferkettenprogramme zu nutzen. Die Transaktion, die voraussichtlich Ende 2024 oder Anfang 2025 abgeschlossen wird, wird AGT eine signifikante Kapitalrendite bieten, die derzeit über 3 Milliarden Dollar Jahresumsatz generiert.
- AGT secures significant capital return from the sale while maintaining 20-year access to infrastructure
- Company currently generates over $3 billion in annual revenue
- Long-term agreement ensures continued access to critical export infrastructure
- Loss of direct ownership of strategic infrastructure assets
- Transaction subject to regulatory approvals and closing conditions
Insights
The acquisition of MobilGrain's infrastructure assets represents a strategic move in the agricultural transportation sector. While financial terms weren't disclosed, this deal is significant as it involves 140 km of shortline rail, 431 km of additional rail infrastructure and multiple bulk loading facilities across Saskatchewan. The 20-year utilization agreement ensures stable, long-term revenue streams for GCM Grosvenor while maintaining AGT's access to critical export infrastructure.
The deal's value lies in controlling essential transportation bottlenecks in one of the world's major agricultural regions. The Lake Diefenbaker Irrigation Project expansion potential and integration with CN's network creates significant growth opportunities. For GCM Grosvenor investors, this represents a defensive infrastructure investment with steady cash flows and potential upside from increasing agricultural exports and potash demand.
This acquisition aligns perfectly with infrastructure investment fundamentals - essential assets with monopolistic characteristics in a critical agricultural corridor. The combination of shortline rail, intermodal terminals and bulk handling facilities creates a vertically integrated logistics network. The 20-year agreement with AGT provides stable anchor tenant revenues, while relationships with CN and potential expansion into potash transportation offer multiple growth vectors.
The asset package's strategic value is enhanced by its irreplaceable location in Saskatchewan's agricultural heartland and the high barriers to entry in rail infrastructure. The partnership with Bluejay Capital Partners adds operational expertise, potentially improving efficiency and asset utilization.
REGINA, Saskatchewan, Nov. 20, 2024 (GLOBE NEWSWIRE) -- AGT Food and Ingredients Inc. (“AGT”) is pleased to announce the sale of all shares of AGT’s shortline rail and bulk handling infrastructure, comprising Mobil Grain Ltd., (“MobilGrain”) to GCM Grosvenor (NASDAQ: GCMG), a global alternative asset management firm, through the firm’s Infrastructure Advantage Strategy. Financial terms and details of the sale and subsequent agreement have not been disclosed. Northborne Partners acted as the sole lead advisor to AGT on the transaction.
The sale includes MobilGrain and its operating subsidiaries: Last Mountain Rail, with 140 kms (87 miles) running from the Regina Plains to Central Saskatchewan, including 160 kms (100 miles) of running rights on CN; Big Sky Rail, with 431 kms (258 miles) running from Central Saskatchewan through West Central Saskatchewan; MobilEx Terminal Ltd., a port and loading facility for grain and potash located in Thunder Bay, Ontario; and Intermobil, a privately-operated, state-of-the-art intermodal terminal located in Regina, SK, featuring CN service to the Atlantic, Pacific and Gulf Coasts and CN’s intermodal terminals. Bulk loading infrastructure includes Saskatchewan facilities in Condie, Aylesbury, Delisle, Dinsmore, Lucky Lake, Beechy, Elrose, Kyle, Eston and Laporte for the receiving of grains, canola and pulses from farmers in the region.
The assets included in the sale of shares to GCM Grosvenor are critical infrastructure for the growth of the Saskatchewan agricultural sector, with transportation of agri-products from the Regina Plains, West Central and Central Saskatchewan regions, an area that is one of the most important grain, canola and pulse growing regions of the world. This infrastructure connects to CN main rail lines, moving Saskatchewan agri-products to coastal ports and markets around the globe. To ensure that the rail and bulk infrastructure included in this sale continues to grow and improve for producers and communities along the line and corridor, AGT has signed a 20-year agreement with MobilGrain to continue to utilize this infrastructure for its global origination and supply chain programs for export, providing Saskatchewan farmers options for marketing their grains, canola and pulses to world markets through this critical and unique collection of community-based assets.
“AGT is thrilled to enter this partnership with GCM Grosvenor, a key infrastructure investor who wants to hold the infrastructure for the long term, improve and grow it to build on the work that MobilGrain and AGT have done over the past two decades operating these assets. With the planned Lake Diefenbaker Irrigation Project adding growth to the already strong Regina Plains, West Central and Central growing regions, there are great opportunities ahead for all involved, including GCM Grosvenor, AGT, CN and farmers and producers who depend on this rail service. This sale returns significant capital to AGT, which presently generates over
“This transaction underscores Saskatchewan’s essential role in the global economy as a key producer of critical minerals and agricultural products. Integrating MobilGrain’s shortline rail with CN’s network creates significant growth potential, while Intermobil and MobilEx terminals will continue supporting agricultural and potash exports. In line with GCM Grosvenor’s responsible contracting principles, all employees at these facilities will remain with MobilGrain. We look forward to supporting Kent Affleck and his team’s growth plans,” said Matthew Rinklin, Managing Director, Infrastructure at GCM Grosvenor. “In addition, partnering with Bluejay Capital Partners, whose transportation and shortline rail expertise is vital, will further strengthen MobilGrain’s future success.”
“CN is pleased with the long and successful partnership with AGT and MobilGrain in this important Saskatchewan shortline railway corridor. We look forward to building on this successful collaboration to grow our business by working with GCM Grosvenor and MobilGrain to further improve first-mile service, and to bring more of Saskatchewan’s potash and agricultural products to the world,” said Remi G. Lalonde, Executive Vice-President and Chief Commercial Officer at CN.
The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in late 2024 or early 2025.
About AGT Food and Ingredients Inc.
AGT Food and Ingredients Inc. (AGT Foods), majority owned by Fairfax Financial Holdings Limited, is a Saskatchewan-based global leader in plant-based proteins and value-added processing of pulses, grains, staple foods and ingredients for export and domestic markets. AGT Foods was founded on the principle “From Producer to the World”, buying pulses, grains, oilseeds and specialty crops from farmers around its facilities and offices in Canada, Türkiye, the U.S., Australia, South Africa, India, China and Europe and processing and exporting its pulses, milled durum wheat and canola products, pulse ingredient flours, starches, fibres, proteins and extruded products and retail packaged foods to customers in over 120 countries around the world. AGT Foods operates a strong network of grain origination and processing facilities in the heart of Saskatchewan’s canola, pulses and wheat growing areas. More information about AGT Foods is available at www.agtfoods.com.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately
About Bluejay Capital
Bluejay Capital (“Bluejay”) is an operationally focused private equity firm investing exclusively in transportation and logistics businesses. The team has more than 120 years of combined operating experience in the sector and is comprised of industry experts with a strong track record of growth and value creation. Bluejay brings deep railroad industry knowledge and significant experience in driving transformational growth in this highly specialized sector. Learn more about Bluejay Capital at www.bluejay-capital.com.
About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.
For further information:
Omer Al-Katib
Managing Director, Corporate Affairs
(306) 525-4490
corporateaffairs@agtfoods.com
FAQ
What assets did AGT Food and Ingredients sell to GCM Grosvenor (GCMG)?
When is the AGT and GCM Grosvenor (GCMG) transaction expected to close?
What is the duration of AGT's agreement with MobilGrain following the sale to GCMG?
What is AGT's current annual revenue as mentioned in the announcement?
