Legumex Walker Sells Specialty Crops Division to The Scoular Company
Legumex Walker Inc. (LWI) announced it has entered into a definitive agreement to sell all of the assets of its Special Crops Division to The Scoular Company for C$94 million plus the amount of net working capital at closing, on a cash free, debt free basis, to be paid in cash.
Based on Legumex’ working capital as of June 30, 2015, the deal presents a transaction value of C$174.6 million for Legumex, however the exact purchase price will be determined by working capital and other clauses in the agreement.
The 123-year old Scoular Company is a leading U.S. marketing company that manages supply chain risk for companies along the supply chain for grains, oilseeds and feed and food ingredients. With nearly $6 billion in sales, Scoular operates 130 independent business units from more than 90 offices and facilities, conducting the buying, selling, storing, and handling of grain and feed and food ingredients.
After the completion of the deal, the division, which will be known as Scoular Special Crops, will be operated much as Legumex had, only with the availability of the necessary capital to expand operations, distribution, and product lines.
“This is a highly strategic addition to our existing global feed and food ingredient merchandising business and U.S.-based grain-handling network,” said Bob Ludington, Scoular’s Chief Operating Officer. “The transaction will significantly increase our product and geographic footprint, which in turn will increase our ability to serve new and existing customers worldwide.”