Ontario Grain Reaches Binding Agreements on Six Grain Elevators

TORONTO — Mar. 24, 2023 — Sollio Agriculture is announcing OntarioGrain L.P. (OntarioGrain) has reached binding agreements for the sale of its six grain elevators. DG Global Inc. and Rolling Acres Grain have agreed to conditional sale terms and will meet with employees starting this week as a step to finalize the sales.

Once sales are final, both buyers intend to retain OntarioGrain employees and continue operations at these sites with an orderly transition of business. Existing client contracts will transfer ownership to ensure minimal disruption for customers. Exact closing dates for each elevator are still to be determined.

In September 2022, Sollio Agriculture —a majority shareholder in OntarioGrain—announced OntarioGrain’s difficult but necessary decision to exit the grain market in the province to refocus on its core business as part of its repositioning plan launched earlier that year.

“I’d like to thank all OntarioGrain employees for their hard work and contributions, and our clients for their loyalty through this process. We’re pleased with the terms and timeline of this sale that meet our initial wind-down plans with the best outcome: minor disruptions to current OntarioGrain employees and clients,” said Casper Kaastra, CEO, Sollio Agriculture. “While it was not an easy decision to make, this transition will see these elevators continue to serve the Ontario grain market under the guidance of local leaders with well-established reputations in the region.” OntarioGrain and DG Global Inc. have reached a binding agreement for the following grain elevators:

• Shetland (1122 Shetland Rd, Florence, ON)

• Staples (3062 Essex 8, Staples, ON)

• Talbotville (39109 Talbot Line, Saint-Thomas, ON)

• Princeton (235 Second Concession Rd, Princeton, ON)

• Becher (1504 Lambton, RR5 Wallaceburg, ON)

“Since 2005, we’ve established ourselves as the leading agricultural container shipper in Canada. As our presence both globally and regionally continues to grow, the acquisition of these assets allows us to deliver more Ontario-based agricultural commodities to markets domestically and around the world,” said Dwight Gerling, CEO, DG Global Inc. “We look forward to continuing to support Ontario’s grain market and serving the region’s producers with the quality and care they expect and deserve.”

OntarioGrain and Rolling Acres Grain have reached a binding agreement for its Palmerston grain elevator (6180 5th Line, Palmerston, ON).

“The Palmerston grain elevator will be a tremendous addition to our operations in the region, where we have been servicing and helping farmers succeed since 2008,” said Evan Renwick, Vice President, Rolling Acres Grain. “As we grow to meet local demands, we look forward to building new relationships in Palmerston and the surrounding area."

Sollio Agriculture (formerly La Coop Fédérée) became a majority shareholder in the OntarioGrain partnership after acquiring the assets in 2018.

Since October, Sollio Agriculture has been evaluating potential sales while maintaining operations through the 2022 harvest season with the intent of honouring all contracts and providing continuous employment to employees affected by the change.

Earlier this year, the company shared encouraging results from the repositioning plan for the fiscal year that ended in October 2022 Sollio Cooperative Group’s Annual General Meeting. Through the company’s current consolidation process, it is building on its strengths by focusing on the balance of its core business activity: providing innovative crop and livestock production products and services to farm producers across the country.

Clients with additional questions or who require additional support through the transition are encouraged to contact their OntarioGrain representative.