Cargill to Acquire Full Ownership of T22 Grain Elevator Joint Venture in Saskatchewan

T22 Holdings Ltd. have reached agreement for Cargill to assume full ownership of the Terminal 22 joint venture grain elevator.

04/11/08 Cargill Limited and the 650-strong producer members of T22 Holdings Ltd. in Balcarres, Saskatchewan, have reached agreement for Cargill to assume full ownership of the Terminal 22 joint venture grain elevator. A large majority of the approximately 650 shareholders of T22 Holdings Ltd. had voted to accept Cargill’s offer at a recent shareholder meeting, paving the way for announcement.

The 10-year-old grain facility has eight full-time employees and a 32,000 metric-tonne storage capacity and serves hundreds of grain producers throughout south and central Saskatchewan. In June 2006, Cargill and the operating company, called Terminal 22 (1998) Inc., entered into an operating and management agreement that granted Cargill full managerial responsibilities for the facility. Leaders of both organizations say that the acquisition marks a natural progression of events in advancing the facility’s growth.

“The performance of the T22 operation over the past 28 months under the management operating agreement has clearly demonstrated this operation’s potential to enhance service to grain producers in the region,” said James Mowbray, manager of Cargill AgHorizons’ Qu’Appelle Valley Farm Service Group region. “The acquisition builds on the strengths of the existing operational framework and reflects the confidence of both parties in successful management of the facility moving forward. “

“We are very pleased by this development and the overwhelming support of our shareholders in voting to help ensure the sustainability of this operation,” said Larry Schultz, chairman of Terminal 22 (1998) Inc.

Leaders of both organizations noted that the transition to full Cargill ownership should be relatively seamless, and that customers could expect the same high level of offerings and services provided during the joint venture. The transaction is expected to close before the end of October 2008. As part of that arrangement, crop input products will continue to be offered by Tri-Way at the T22 facility.