Ceres Global Ag Corp. has completed the sale of its Port Colborne facility in Ontario to London Agricultural Commodities (LAC) on February 17 for $4 million.
All former Ceres employees at the terminal will transition to LAC.
"The sale of the Port Colborne facility further enhances Ceres' strategic partnership with London Agricultural Commodities and aligns with our long-term strategy of optimizing our footprint around our core products and the locations where we operate," said Carlos Paz, CEO of Ceres.
Supporting the farming sector in Ontario has always been a priority for LAC, said Richard Smibert, president of London Agricultural Commodities Inc. for LAC.
"This strategic move to take ownership of a facility we have previously leased further demonstrates our commitment to the industry and exercises our ability to efficiently plan for more internationally bound cargo shipments," said Smibert.
Ceres plans to use the proceeds from the sale to execute against its broader strategy to increase core product farmer-direct origination from key growing regions while optimizing capital structure by paying down term debt.
