Merger to help build province's pulse exports

Source: Saskatchewan Agriculture and Food

Two Regina-based pulse crop processing companies, Saskcan Pulse Trading and Agtech Income Fund, have merged with the goal of becoming North America’s largest exporter of peas and lentils to the food and ingredient market.

“The merger will benefit the province of Saskatchewan in several ways,” said Murad Al-Katib, President and CEO of Saskcan Pulse Trading.

“Ultimately, the pulse export industry is about market reach, financial strength and risk management. This merger brings together two successful companies with strong track records, and completes the product mix we are able to offer global clients, who, in turn, are able to offer better prices to the producers here in Saskatchewan.”

Al-Katib says the two companies are a good fit. Saskcan has been around for six years and has seen significant growth in a very short period of time.

“The company essentially started with nothing and has grown to include three plants. It has become one of the largest pea and lentil exporters in the world,” he stated.

“When the opportunity came up to look at doing a share offering or a public equity placement, we were looking at options to accomplish that. Merging with Agtech Income Fund provided the solution. They are a profitable, publicly traded company.”

Al-Katib says discussions towards the merger began a couple of months ago. Since then, all of the pieces have fallen into place, resulting in the agreement.

“We believe strongly in consolidating the pulse industry,” he said. “We also believe that there are too many exporters that are under-capitalized and in a position where buyers in the world market are able to take advantage of them.”

By continuing to merge with strong players in the pulse industry, Al-Katib says his company will be able to assist Saskatchewan producers by achieving greater market influence at home and abroad, which will ultimately deliver better prices to growers.

Currently, Saskcan takes part in a variety of activities, including splitting and adding value to peas and lentils, as well as colour-sorting green lentils. The company is looking at adding chickpeas as well as pulse flour and fibre production to the list, with its main focus being to break into the food and ingredient market.

Al-Katib says the entire motivation behind the merger and the public share offering is to fund the company’s growth. “We have plans to continue our development in the food sector,” he explained. “We are also looking at other crops that can be processed into food ingredients. These options will allow us to continue down the same path.”

The next steps for the newly formed company include getting the private placement of equity closed by June 30, completing a facility expansion in North Dakota, and putting a corporate structure in place to run its five plants, increase rates and continue to bring value-added opportunities to producers of pulse crops and consumers around the world.

“We have estimated it will take roughly a year to bring the structure together. Then, for 2008 and beyond, we will be looking at growth plans,” he said.

Al-Katib feels the pea and lentil market in Saskatchewan holds tremendous opportunity. “Now, more than ever before, there is a brighter picture. The prices are up and markets are becoming more quality-conscious, which is an opportunity to extract a premium for value-added products,” he said.

“We think that the time is right for Canada to continue on the path of becoming the world’s dominant supplier and exporter. To some extent, we are today, but we want to get higher up the value chain. The future is bright!”

For more information, contact:
Murad Al-Katib, President and CEO
Saskcan Pulse Trading
Phone: (306) 525-4490