AGT Food and Ingredients Inc. Announces Equity Stake in CanEst Transit Inc. and Terminal Facility

REGINA, July 11, 2017

REGINA, July 11, 2017 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGT) ("AGT" or the "Company") has announced that through a wholly-owned subsidiary, AGT Terminal East Inc. ("AGTTE"), AGT has acquired a minority interest in CanEst Transit Inc. ("CanEst"), a terminal in the Port of Montreal (the "Terminal"), which, among other things, stores and fills containers and handles and transports bulk products.  The shareholder group in CanEst includes La Coop fédérée and Transit BD Inc.

AGTTE's minority equity interest may be increased pursuant to an earn-up, based on delivered volumes under the terminal agreement (defined below). AGTTE has also provided a shareholder loan to CanEst, which, together with other shareholder loans from the other shareholders, is to be used for working capital for the Terminal. AGTTE has also secured a 16 year terminal agreement with CanEst, which expires on August 31, 2033, with an option to extend on the agreement by both parties for an additional 5 years (the "Terminal Agreement"). The aggregate consideration for AGTTE's equity interest and portion of the shareholder loan is $1,925,000 and AGTTE's best efforts to deliver consistent volumes of unit trains of agri-product to the Terminal for containerization for export during the term of the Terminal Agreement.

"Port facility access at tide water is an essential strategy for AGT to execute the growth of our Canadian bulk handling business. 60,000 metric tonnes of storage and a strategic location within the Port of Montreal made this opportunity one that we felt was a good fit with our recent investments in bulk rail logistics assets.  Port assets in Montreal are an important requirement for receiving 100 unit rail car trains to transload into containers.  This facility is unique in its ability to do that in Montreal.  It fit with our growth strategy," said Murad Al-Katib, President and CEO of AGT Foods.  

"Investments in terminals, as well as long term service agreements at port locations, are key components for our Canadian business strategy.  We already have the Great Lakes terminal in Thunder Bay with Mobil Ex, and now add a stake in CanEst. We are pleased to be partnering with Transit BD as the majority shareholder, bringing in the experience of the Beaudoin Family and management at CanEst and La Coop fédérée as strong partners with this modern port infrastructure.  This is a strategic investment for our further growth," added Huseyin Arslan, Executive Chairman of AGT Foods.

AGT Food and Ingredients Inc. Profile
AGT Food and Ingredients Inc. (AGT) is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands, Spain, Switzerland and India and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.

About La Coop fédérée
Founded in 1922, La Coop fédérée is the largest agri-food enterprise in Quebec and it is the 24th largest agri-food cooperative in the world. It represents more than 90,000 members grouped into nearly 70 cooperatives with operations spread out in many Canadian provinces. More than 12,000 people are employed at La Coop which has annual revenues of $6.3 billion. Including its affiliated network, La Coop fédérée has nearly 18,000 employees and consolidated revenue of $9.2 billion. Its activities are separated into three Divisions: Olymel S.E.C (under the Olymel, Flamingo and Lafleur banners), the Agri-business division (under the La Coop and Elite banners), and Groupe BMR under the BMR, Unimat, Agrizone and Potvin & Bouchard banners). For further information, visit www.lacoop.coop. Twitter account: twitter.com/LaCoop_federee.