Parrish & Heimbecker adds 10 rural elevators, growing grain network

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This article was published 05/09/2019 (2251 days ago), so information in it may no longer be current.

Parrish & Heimbecker Ltd., one of Winnipeg’s oldest companies, has increased its presence in the western Canadian grain-handling business Wednesday by acquiring 10 country elevators from Louis Dreyfus Company.

The family-owned business now has 42 elevators from Manitoba to British Columbia, along with joint venture ownership of one West Coast terminal, and another one under construction on the Fraser River that is to be completed by the fall of 2020.

“These are exciting times,” said John Heimbecker, CEO of the family-owned business. “This acquisition gives Parrish & Heimbecker a real strong geographic presence across all of Western Canada. When you look at the two businesses, it really does make a lot of sense.”

The acquired locations are in all four western provinces: Rathwell and Virden, Man.; Tisdale, Wilkie, Aberdeen and Kegworth, Sask.; Joffre, Lyalta and Rycroft, Alta.; and Dawson Creek, B.C.

The company has offices across the country and ships grain around the world. Its grain-handling business includes marine and rail freight management to both domestic and export markets. Parrish & Heimbecker also owns the largest Canadian-owned flour-milling business, P&H Milling Group with eight mills, and New Life-Feeds, a feed mill operation with another five mills.

“Parrish & Heimbecker is heavily invested in Canada and we want to commit capital resources to continue to grow our enterprise here,” Heimbecker said in an interview on Wednesday.

In a statement, Heimbecker said the deal will allow the company to continue to provide farmers with local, best-in-class products and support, backed by a growing national grain asset network.

“This is a win-win for farmers seeking a more competitive grain and crop inputs offering, as well as for the stakeholders within P&H and Louis Dreyfus Company who work to support them,” he said.

The acquisition price was not disclosed, but Heimbecker said the deal was done at a time when the commodity cycle is “not completely advantageous.”

It also comes at a time when global markets are in a relative state of uncertainty with, among other things, a growing trade war between the U.S. and China with Canada getting caught in the middle.

martin.cash@freepress.mb.ca