SYMBOL: TSX: AGT
REGINA, Jan. 14, 2014 /CNW/ - Alliance Grain Traders Inc. ("AGT") is pleased to announce that it has acquired substantially all of the assets of Québec-based CLIC International Inc. ("CLIC"), a Canadian ethnic and traditional retail food packager and canner and retail and food service distributor. The acquired assets include inventory, retail packaging and canning production-related equipment, all CLIC and associated retail brands, retail and food service listings, and customer contracts. The CLIC management team will remain with AGT's new Quebec Food Division, AGT CLIC Foods Inc.
"The acquisition of CLIC bolsters our Ingredient and Packaged Foods business segment, with small packaging and canning lines to distribute a broad line of pulses and ethnic foods to the North American and global retail and food service sectors. We feel there are certainly synergies with regard to consumer and retail packaging and distribution of our pulses and staple foods products. Expanding our retail business with this acquisition, combined with the positive improvement that we have reported in our core legacy business, and the significant opportunities we see ahead of us in pulses flour, protein, starch and fibre ingredients, immediately establishes AGT as a player in the North American food ingredient, packaged and retail food industry. This transaction is expected to assist in furthering our stated objective of moving AGT up the value chain and solidifying our transition from a commodity exporter to a food company," said Mr. Murad Al-Katib, President and Chief Executive Officer of AGT.
"With the acquisition of CLIC, we continue our drive towards new platforms for growth in our retail packaged foods and food ingredient business, expanding on the success we have enjoyed in pulses, staple foods, pasta and other retail business globally. North America and European Union retail markets provide great opportunities for AGT in the packaging and distribution of small pack and canned products, including our current offerings in pasta, rice and bulgur as well as private label for all of our products. We are optimistic about the potential sales and revenue streams we seek to generate with the acquisition of CLIC providing a springboard for our new business segment, which may show great potential for growth and return for our company and our shareholders," added Mr. Huseyin Arslan, Executive Chairman of the Board of Directors of AGT.
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (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. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands, Spain and India and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.
CLIC is specialized in the conditioning and in the transformation of rice, cereals and pulses. With its own canning plant, CLIC has become an innovative company in the transformation of international food products such as their 5-bean salad bar mix, available to eat in one can, which have been adapted to the norms and tastes of North Americans. In addition, CLIC exports pulses such as lentils, chickpeas and broad beans (fava), in bulk or in cans produced in Canada. CLIC's premises stands approximately 110,000 square feet, including a 6,500 square feet office space at his headquarters in Laval. CLIC also operates an HACCP certified and federally licensed (#375) canning plant in Saint-Léonard. It also operates another distribution center in Ottawa, CLIC Ottawa Foods, and a branch in Toronto, CLIC Toronto Foods. CLIC has a diversified clientele ranging from warehouse stores to convenience stores to ethnic stores, natural food products stores, hotel suppliers, hospitals and restaurants, food processing companies, independent distributors, ship owners and supermarket food chains.
Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGT at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to satisfactorily completion of due diligence of the business and affairs of CLIC, governmental, regulatory and stock exchange approvals, the satisfactory negotiation of a definitive acquisition agreement for the Acquisition, risks relating to the integration of acquisitions or to international operations, as well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGT dated February 21, 2013 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE Alliance Grain Traders Inc.