Central Soya ups investment in Canadian edible oils
the North American operating unit of Cereol, has signed a letter of
agreement to acquire full ownership of CanAmera Foods of Canada.
Soy protein concentrate and lecithin manufacturer Central Soya, the North American operating unit of Cereol, has signed a letter of agreement to acquire full ownership of CanAmera Foods of Canada.
Central Soya has owned 50 per cent of CanAmera since it was formed in 1992 as a joint venture partnership with Saskatchewan Wheat Pool of Regina, Saskatchewan, and Agricore United of Winnipeg, Manitoba.
CanAmera Foods is based in Oakville, Ontario, and is Canada's largest producer of edible oil products. The company processes canola and soy and has 14 operating locations with about 750 employees, all in Canada.
Central Soya, based in Fort Wayne, Indiana, consists of the North American operating divisions of Cereol, a leading producer of packaged seed oils and processed oilseed ingredients. Central Soya has 14 operating locations in the United States, Denmark and France and approximately 1,300 employees.
"Acquiring control of CanAmera will make Cereol a more efficient player in the North American market and strategically complement Cereol's worldwide position in packaged vegetable oils and further processed oilseed ingredients," said Carl Hausmann, chairman and CEO of Cereol.
Central Soya has operated in Canada since 1985. Its Canadian operations were merged with CSP Foods to form the CanAmera joint venture in 1992 ; at the same time CanAmera purchased the oilseed processing operations of Canada Packers, creating the largest oilseed processor in Canada.
"With the implementation of the North American Free Trade Agreement (NAFTA) resulting in a significant increase in cross-border trade in oilseed products, this change in ownership will allow Central Soya and CanAmera to operate as one unit, meeting customer needs in a more efficient, co-ordinated and customer-focused manner" said Hausmann.
The transaction is subject to approval by appropriate authorities in Canada and the US. Cereol had net sales of € 5.2 billion in 2001, with over 5,400 employees and 52 industrial units in Europe and North America.
