AGT Food and Ingredients

Last updated
AGT Food and Ingredients Inc.
Company type Private Company
IndustryAgriculture
Founded2001
Headquarters Regina, Saskatchewan, Canada
Number of locations
47 facilities (2016)
Area served
Worldwide
Key people
Murad Al-Katib (President and CEO)
Hüseyin Arslan (Executive Chairman)
RevenueIncrease2.svgCA$1.9 billion(2016) [1]
Increase2.svgCA$83 million(2016) [1]
Increase2.svgCA$21 million(2016) [1]
Total assets Decrease2.svgCA$1.3 billion(2016) [1]
Total equity Decrease2.svgCA$0.3 billion(2016) [1]
Number of employees
1,900 (2016) [2]

AGT Food and Ingredients is a Canadian processor of pulses and other food ingredients. It is one of the largest pulse-processing companies in the world. [3]

Contents

History

AGT was founded in 2001 as SaskCan Pulse Trading by Murad Al-Katib, the present CEO. [3] He received funding from the Arslan family of Turkey, owners of the Arbel group, a Turkish pulse-processing company. [3] Murad Al-Katib won the 2016 EY Entrepreneur of the year in Canada [4] and the 2017 EY World Entrepreneur Of The Year. [5] Murad Al-Katib is honored with the Lifetime Achievement Award of the University of Saskatchewan Alumni Association. [6]

In 2007, the Agtech Income Fund acquired SaskCan, and then renamed itself Alliance Grain Traders. [7] As a result of this deal, Alliance Grain Traders was listed on Toronto Venture Exchange. [7]

In 2009, Alliance Grain Traders converted from an income fund to a normal corporation. Also in 2009, Alliance Grain Traders bought the Arbel group for $104 million, including its pasta business. [7] [8]

In 2011, the company took over South Africa based Advance Seed. [9] Since 2012, it has shifted into the packaged foods business. [10] In particular, it has expanded production at its facility in Minot, North Dakota. [11]

In 2014, the company was renamed AGT Food and Ingredients. [3] In 2015, AGT bought Big Sky Rail, a Saskatchewan short line railway, for $57.5 million. [12] In 2018, it was part of the consortium that purchased the Hudson Bay Railway. [13]

On February 5, 2019, the company announced shareholder approval for a privatization deal led by its President and Chief Executive Officer, Murad Al-Katib, in consortium with Fairfax Financial and Point North Capital. [14] On April 17, 2019, the transaction to take the company private was closed. [15]

Business

AGT buys, processes, and distributes pulses, including lentils, peas, and beans, as well as grains and other agricultural commodities. [10] It also manufactures and distributes food ingredients and packaged foods. In 2016, pulses were responsible for 58% of sales, milled grains for 7%, and rices and other products for 35%. [2] As of 2016, 58% of revenue was from pulse and grain processing, 28% was from distribution, and the other 14% was from food ingredients and packaged foods. [2] It has facilities in Canada, the United States, Turkey, China, South Africa, and Australia. In 2016, 6% of sales were in Canada, 12% were in the rest of the Americas, 28% were in Asia-Pacific, and the other 54% were in Europe, the Middle East, and North Africa. [2]

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References

  1. 1 2 3 4 5 "AGT Financial Results 2016" . Retrieved 2 January 2018.
  2. 1 2 3 4 "AGT Annual Information Form 2016" . Retrieved 2 January 2018.
  3. 1 2 3 4 "The Power of Pulses: A tale of two pulse processors". Regina Leader-Post. 2016-08-19. Retrieved 2018-01-02.
  4. "Murad Al-Katib". www.ey.com. Retrieved 2024-11-08.
  5. "Murad Al-Katib - EY World Entrepreneur Of The Year™ Class of 2017, Canada". www.ey.com. Retrieved 2024-11-08.
  6. "al-katib - Alumni and Friends". alumni. Retrieved 2024-11-08.
  7. 1 2 3 "A decade on Alliance Grain Traders has achieved a lot". Financial Post. 2013-01-31. Retrieved 2018-01-02.
  8. "Alliance Grain to buy Arbel Group in $93 mln deal". Reuters. 2009-06-17. Retrieved 2018-01-02.
  9. "South Africa: Advance Seed Taken Over By Alliance Grain Traders". Biz-Community (Cape Town). 2011-10-13. Retrieved 2018-01-02.
  10. 1 2 Milstead, David (2017-11-11). "Smart Money Willing to Play the Waiting Game on AGT". The Globe and Mail.
  11. "Food sector bright spot for AGT - The Western Producer". The Western Producer. 2016-03-31. Retrieved 2018-01-02.
  12. "Pea Producer Bypasses Prairie Traffic Jam With Own Railroad". Bloomberg.com. 2015-12-15. Retrieved 2018-01-02.
  13. "Warm reception in Churchill for new owners of port and railway | CBC News". CBC. Retrieved 2018-09-19.
  14. "AGT Food and Ingredients Inc. Announces Shareholder Approval of Plan of Arrangement and the Final Results of the Cash Tender Offer and Consent Solicitation for its 5.875% Senior Notes due 2021 (Press release)". www.newswire.ca. Feb 5, 2019. Retrieved 2019-09-01.
  15. "AGT Food and Ingredients Inc. Announces Completion of the Plan of Arrangement and Tender Offer (Press release)". www.newswire.ca. Apr 17, 2019. Retrieved 2019-09-01.