Richardsons acquire some Viterra assets in Glencore deal.

[monte]

I had this Richardsons news release sent to me this morning.

RICHARDSON ANNOUNCES AGREEMENT TO PURCHASE VITERRA ASSETS
March 20, 2012 (Winnipeg, MB) – Richardson International Limited is pleased to announce it
has agreed to acquire in excess of $900 million worth of Viterra assets, including grain
handling, crop input and processing facilities and related working capital, which Glencore
International plc plans to divest following its successful acquisition of Viterra. Earlier today,
Glencore announced its offer to purchase all of the issued and outstanding shares of Viterra
has been supported and recommended by Viterra’s Board of Directors.
The assets to be acquired by Richardson include 19 country elevators and the crop input
centres co-located with those elevators (see Schedule A attached), which complement the
Richardson Pioneer network of grain elevators and crop input centres across Western Canada.
Following the transaction, Richardson and Glencore-owned Viterra will be similarly sized grain
handling companies. Reducing the dominance of a single company should benefit western
Canadian farmers through increased choice and competition for their business.
“This is an important milestone in our 155-year history as it strengthens its position as a
Canadian and global leader in agriculture and food processing,” says Hartley T. Richardson,
Chairman of Richardson International and President & Chief Executive Officer of James
Richardson & Sons, Limited. “The same pioneering spirit with which our company was founded
is alive and well today as we, together with our management and employees, grow for the
future by expanding our capabilities to compete both in Canada and on the world stage.”
Richardson’s agreement with Glencore includes the purchase of a 25% ownership interest in
Cascadia Terminal (Vancouver), which will allow Richardson to ship increased volumes of grain
and oilseeds through that port following the acquisition. Richardson will also acquire a Viterra
terminal in Thunder Bay, ON, which will enhance the company’s current operations at that port.
Richardson will purchase the Can-Oat Milling business with oat processing plants in Portage la
Prairie, MB, Martensville, SK and Barrhead, AB, and 21st Century Grain Processing, which has
an oat processing plant in South Sioux City, NE and a wheat mill in Dawn, TX.
“This is a very exciting time for Richardson. We are adding strategic assets to strengthen our
presence throughout Western Canada, which will allow us to offer producers greater choice and
improved access to world markets,” says Curt Vossen, President of Richardson International.
“We are also building on our success in the food processing business with the addition of Can-
Oat Milling and 21st Century Grain, which have proven management teams that we look forward
to working with.”
The transaction between Richardson and Glencore is subject to all requisite regulatory
approvals being obtained. Following the successful acquisition of these assets, current
employees at the selected locations will be offered the opportunity to join the Richardson team.
About Richardson International Limited
Richardson International is a worldwide handler and merchandiser of all major Canadian-grown
grains and oilseeds and is recognized as a global leader in agriculture and food processing.

Based in Winnipeg, Manitoba, with over 1,700 employees across Canada, Richardson is
Canada’s largest privately owned agribusiness. One of Canada’s 50 Best Managed
Companies, Richardson is a wholly-owned subsidiary of James Richardson & Sons, Limited.
About James Richardson & Sons, Limited
James Richardson & Sons, Limited is a 100% Canadian-owned and controlled, private
corporation owned by the Richardson family. The company has interests in agriculture and food
processing, oil and gas exploration and development, financial services, real estate and private
equity investments and is headquartered in Winnipeg, Manitoba.
-30-
Schedule A

ELEVATOR LOCATIONS PROVINCE
Lacombe East AB
Lavoy AB
High Level AB
Vulcan AB
Provost SK
Assiniboia SK
Carrot River SK
Davidson SK
Kindersley SK
Alameda SK
Melville SK
Langenburg SK
Maple Creek SK
Regina East / White City SK
Unity SK
Red River South MB
South Lakes MB
Dawson Creek BC
Fort St. John BC

[Daylate]

Richardsons was shy on port access before. Does a 25% share in Cascadia even cover what the aquired 19 grain handling facilities will generate?
I would have thought they would be more interested in the export ports.
Although i guess they did purchase some mills and processing plants as well...

[monte]

I am not sure anyone knows how things will work with any of these changes. It is going to be a very uncertain summer.

[bucket]

To change a business partner this close to seeding is a bit unnerving.

But it was just a couple of weeks ago that Mayo said there was no offers and today they were saying they have working on this for a few months.

[TOM4CWB]

Bucket,

When Viterra sold off Unifeed... this was a good indication there was serious changes in store. Glencore will be interesting to work with; most in Aus. are reasonably comfortable...

Only time will tell!

Cheers!

[GALAXIE500]

Down here where I farm and ranch(I thrive on torture! ) near Maple Creek Sk. , A few of the employeees at our Viterra elevator are lazy bastards, and could care less about customer service, so I say let them put A Pioneer logo on the place. They used to have an elevator in Maple Creek years ago, so most of the farmers aren't going to have a problem with it. I was talking to one of the marketing reps there this morning and he figures that they will bring in a GM for grain from Pioneer , and the rest will be offered a job or they will be replaced. At least its a Canadian company that will own it. A while back when they fired that loser Manager Terry Major, It was like a breath of fresh air around that place. Now maybe they can get rid of a few more pieces of "company driftwood ".

[LEP]

Galaxie500 how much volume does the maple creek location do? I
always wondered about that location when SWP built it simply because
there was so much pastureland in every direction.

[GALAXIE500]

Lep: I used to work at SWP in Maple Creek. I quit in 2002. At that time We handled around 180,000 tonnes / year. Now they handle around 250,000 tonnes, give or take. It is just like it was back when we all run wood elevators, always waiting on cars. Not only that , Its the head office , not the former CWB who allocated the cars.So the high handling elevators got more car allocations , and ones like Maple Creek were always last in line. The elevator manager at the time was a lazy SOB , so he didn't care if they got cars more than once every two weeks. That way he could coast into his pension. I think that facility could handle a lot more grain if they were aggressive at it. It all depends on the people who are running it. Hopefully its better with Pioneer.

[sidvicious02]

For anyone interested, the CGC publishes deliveries at prairie points across western Canada. The only problem is it's based on the "town" and not the actual elevator so if there is more than one elevator in town it has all deliveries in that town added together.

http://www.grainscanada.gc.ca/statistics-statistiques/gdpp-lgpcp/gdppm-mlgpcp-eng.htm