AGT Food acquires Mobil Capital

On October 30, 2015, AGT Food and Ingredients Inc. (AGT) acquired Saskatchewan-based Mobil Capital Holdings Ltd. (Mobil) and its subsidiaries in a transaction worth $57.5 million, which included the issuance of $19 million of common shares in the capital of AGT and a $19.5 million promissory note.

Mobil is a private company which carries on the businesses of: (i) the operation of a modular designed, moveable plant for processing agricultural commodities; (ii) the operation of short-line railways; (iii) bulk commodity transloading; and (iv) trading pulses and grains in the Provinces of Saskatchewan and Ontario by way of its subsidiaries: Mobil Grain Ltd., 101115529 Saskatchewan Ltd., Big Sky Rail Corp., Mobilex Terminal Ltd. and Mobil Transloading Ltd.

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.

AGT was represented by Stikeman Elliott LLP with a team that included Kenton Rein, Michael Kilby, Patrick McNally, Kris Noonan and Erin Dand. MacPherson Leslie & Tyerman LLP represented AGT in respect of Saskatchewan legal matters with a team that included Len Andrychuk, QC, Aaron Runge and Samer Awadh.

Mobil was represented by Kanuka Thuringer LLP with a team that included Warren Sproule, QC, Marie-France Menc, Kelly Ruse, Laurance Yakimowski, Mya Osatiuk, Natalie Fennell and Taylor Carson with assistance from Sherri Altshuler and Margaret Nelligan of Aird & Berlis LLP in respect of Ontario legal matters.