[UPDATED] — United Farmers of Alberta (UFA) announced today it had purchased nearly 1.3 million shares in Winnipeg-based Canterra Seeds.
The $2.5 million deal represents a 17 per cent stake in the company’s common shares. UFA purchased the shares from Ceres Global Ag Corp.
“Over the last several years UFA has demonstrated strong results and built a balance sheet that will enable continued investment in western Canadian agriculture that benefits our member-owners,” said UFA president and CEO Scott Bolton in an UFA news release.
Bolton has been appointed to Canterra’s board of directors. Jeff Wildeman, who represented Ceres, has resigned from the board.
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In a news release, Canterra said Ceres was looking to “streamline their asset footprint,” and UFA, already a partner of Canterra seeds, jumped at the chance to pick up the shares.
The purchase won’t affect day-to-day operations or the seed varieties available at UFA, the release said.
“Our board of directors understands the unique challenges faced by farmers and ranchers, and this announcement demonstrates our commitment to the long-term vitality of member-owners,” said UFA board chair Kevin Hoppins.
The investment will also allow UFA to increase its focus on research and innovation, said Bolton in the Canterra release.
UFA is an Alberta-based agricultural co-operative that owns farm and ranch supply stores and petroleum locations in Alberta, Saskatchewan and B.C. It has more than 120,000 members.
—Updated July 5. Adds information about purchase from Ceres Global Ag Corp.
