June 2, 2003
The assets of FarmGro Organic Foods Inc. have been sold to N.M. Paterson & Sons Limited for $3.4 million. The Manitoba-based grain handling company will operate the mill located east of Regina, and plans a significant expansion in the near future.
N.M. Paterson & Sons Limited has been in the grain business since 1908. It operates approximately 50 elevators across western Canada, more than half of which are in Saskatchewan.
"It's good news that an industry leader like Paterson is making this commitment to Saskatchewan," Crown Investments Corporation Minister Maynard Sonntag said. "It will benefit the organic industry in our province, and will continue to provide markets for organic products."
FarmGro was established in 1999 by a number of private investors, supported by investments from CIC and the Saskatchewan Government Growth Fund (SGGF). The mill began production in 2000. FarmGro was put into receivership in December 2002. The receiver, Clark Sullivan of Sullivan & Associates Inc. of Regina, negotiated the sale of the assets.
"We believe we have received fair market value for the assets," Sullivan said. "Our goal was to recover as much as possible of the investments made by the secured creditors, and we have done that."
For More Information, Contact:
Crown Investments Corporation
Sullivan & Associates Inc.