Northborne Partners

MINNEAPOLIS, MN – November 26, 2024 – Northborne Partners is pleased to announce that it served as the exclusive financial advisor to AGT Food and Ingredients Inc. (“AGT”) in connection with its announced sale of all shares of AGT’s short line rail and bulk handling infrastructure, comprising Mobil Grain Ltd., (“Mobil”) to GCM Grosvenor (“GCM”). The transaction is subject to regulatory approvals and conventional closing conditions and is expected to close in late 2024 or early 2025. Financial terms were not disclosed.

The sale includes MobilGrain and its operating subsidiaries: Last Mountain Rail, with 140 kms (87 miles) running from the Regina Plains to Central Saskatchewan, including 160 kms (100 miles) of running rights on CN; Big Sky Rail, with 431 kms (258 miles) running from Central Saskatchewan through West Central Saskatchewan; MobilEx Terminal Ltd., a port and loading facility for grain and potash located in Thunder Bay, Ontario; and Intermobil, a privately-operated, state-of-the-art intermodal terminal located in Regina, SK, featuring CN service to the Atlantic, Pacific and Gulf Coasts and CN’s intermodal terminals. Bulk loading infrastructure includes Saskatchewan facilities in Condie, Aylesbury, Delisle, Dinsmore, Lucky Lake, Beechy Elrose, Kyle, Eston and Laporte for the receiving of grains, canola and pulses from farmers in the region.

The Mobil assets represent critical infrastructure for the growth of the Saskatchewan agricultural sector (one of the most important grain, canola and pulse growing regions in the world) and the transportation of agri-products from the Regina Plains, West Central and Central Saskatchewan regions to coastal ports and markets around the globe.

Ben Marks, Managing Director at Northborne, said, “In a time of increasing global food insecurity and consolidation of agri-supply chains, MobilGrain has emerged as a critical first-mile/last-mile transportation partner with a unique solution that encompasses each step of the agricultural supply chain. Under the leadership of Murad Al-Katib, President and CEO of AGT, and Kent Affleck, President of MobilGrain, the business has evolved into a differentiated market-leading platform primed to scale under independent ownership. It was a privilege to work with AGT and Mobil’s management team on this important transaction and to find the right partner that will support the ongoing commercial relationship between the two organizations post-transaction.”

“AGT is thrilled to enter this partnership with GCM Grosvenor, a key infrastructure investor who wants to hold the infrastructure for the long term, improve and grow it to build on the work that MobilGrain and AGT have done over the past two decades operating these assets. With the planned Lake Diefenbaker Irrigation Project adding growth to the already strong Regina Plains, West Central and Central growing regions, there are great opportunities ahead for all involved, including GCM Grosvenor, AGT, CN and farmers and producers who depend on this rail service. This sale returns significant capital to AGT, which presently generates over $3 billion in revenue annually. We will continue building on the strength of our partnership with Fairfax Financial Holdings Ltd. in creating a global agriculture growth story, including expanding our global packaged foods business. The long-term agreement with GCM Grosvenor and MobilGrain means AGT will remain a mainstay in the communities along the railway in which we operate today,” said Murad Al-Katib. Regarding Northborne’s involvement, he commented, “The Northborne team was a trusted partner in helping us navigate this complex transaction. Their deep knowledge of the rail and broader transportation industry across North America as well as their thorough M&A experience were instrumental in helping us achieve this great outcome.”

Blake, Cassels & Graydon LLP and Kanuka Thuringer LLP served as legal advisors to AGT. Bluejay Capital Partners, LLC is also investing alongside GCM.