AGT makes a key acquisition

Article Excerpt

AGT FOOD & INGREDIENTS $28.27 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (306-525-4490; www.agtfoods.com; Shares outstanding: 23.1 million; Market cap: $651.5 million; Dividend yield: 2.1%) has acquired Mobil Capital Holdings for $57.5 million. This business owns a movable crop-processing plant, short-line railways, bulk-loading facilities and a grain- and pulse-trading operation. Most of Mobil’s assets are in Saskatchewan. This acquisition follows AGT’s $22-million purchase of West Central Road & Rail’s assets in June 2015. That deal included five bulk-loading sites in Saskatchewan. Purchases like these are important because a big part of AGT’s recent success has come from its shift to more profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting, sorting and bagging bulk crops. Food makers use AGT’s processed ingredients in products like baked goods, soups and beverages, pet food and animal feed. The new operations should help ensure the company can supply its manufacturing plants and continue its growth. AGT Food & Ingredients…