Thursday, September 4, 2014

South West buys Palmerston Grain

South West Ag Partners Inc. is buying Palmerston Grain for an undisclosed price.

Palmerston Grain will continue to operate under its name. South West Ag Partners is based in Chatham and says this deal expands its territory and risk management offerings.

John McLaughlin, speaking for the family that owns the business, said he’s confident South West Ag Partners will do a good job of looking after long-term customers and employees.

The family is retaining C&M Seeds.

McLaughlin rattled a few cages when he launched into the seed wheat business, introducing hard red spring wheats to Ontario and breaking the monopoly held by the Canadian Wheat Board.

He developed an identity-preserve system that satisfied government officials who guard Canada’s quality standards for bread-making wheats and he pioneered quality-chain-management networks with millers and end users.

What’s being sold is the grain 2.1-million-bushel elevator on the 5th Line of Minto Township, the Identity Preserved system and the grain handling technology.

Palmerston Grain has about half as big a grain business as South West Ag Partners.