US: Alliance Grain Traders boosts retail business through CLIC buy
AGT sees significant opportunities in the flour, protein, starch and fibre ingredients sectors through the acquisition of Clic
Canada's Alliance Grain Traders has acquired Quebec-based retail food packaging company CLIC International.
As part of the acquisition, AGT will take on all of CLIC's retail brands, which take in products from basmati rice to dry and canned pulses. The former CLIC management team will transfer over to AGT's Quebec food division.
AGT primarily buys lentils, peas, beans and chickpeas from growers in Canada, the US, Turkey, Australia, China and South Africa and supplies them to food manufacturers and foodservice customers. Clients include Campbell Soup Co. and Sabra Dipping Co., the dips venture run by PepsiCo and Israel's Strauss Group.
Murad Al-Katib, AGT's president and CEO, said the acquisition of CLIC International would expand the company's existing business down the supply chain. CLIC supplies canned pulse products to customers including convenience outlets, ethnic stores and supermarket food chains.
"Expanding our retail business with this acquisition, combined with the positive improvement that we have reported in our core legacy business, and the significant opportunities we see ahead of us in pulses flour, protein, starch and fibre ingredients, immediately establishes AGT as a player in the North American food ingredient, packaged and retail food industry," he said. "This transaction is expected to assist in furthering our stated objective of moving AGT up the value chain and solidifying our transition from a commodity exporter to a food company."
AGT chairman Huseyin Arsalan added the company is "optimistic about the potential sales and revenue streams" from the acquisition. "It may show great potential for growth and return for our company and our shareholders," Arsalan said.
Jan. 14, 2014 /CNW/ - Alliance Grain Traders Inc. ("AGT") is pleased to announce that it has acquired substantially all of the assets of Québec-based CLIC International Inc.
("CLIC"), a Canadian ethnic and traditional retail food packager and canner and retail and food service distributor. The acquired assets include inventory, retail packaging and canning production-related equipment, all CLIC and associated retail brands, retail and food service listings, and customer contracts. The CLIC management team will remain with AGT's new Quebec Food Division, AGT CLIC Foods Inc.
"The acquisition of CLIC bolsters our Ingredient and Packaged Foods business segment, with small packaging and canning lines to distribute a broad line of pulses and ethnic foods to the North American and global retail and food service sectors. We feel there are certainly synergies with regard to consumer and retail packaging and distribution of our pulses and staple foods products. Expanding our retail business with this acquisition, combined with the positive improvement that we have reported in our core legacy business, and the significant opportunities we see ahead of us in pulses flour, protein, starch and fibre ingredients, immediately establishes AGT as a player in the North American food ingredient, packaged and retail food industry. This transaction is expected to assist in furthering our stated objective of moving AGT up the value chain and solidifying our transition from a commodity exporter to a food company," said Mr. Murad Al-Katib, President and Chief Executive Officer of AGT.
"With the acquisition of CLIC, we continue our drive towards new platforms for growth in our retail packaged foods and food ingredient business, expanding on the success we have enjoyed in pulses, staple foods, pasta and other retail business globally. North America and European Union retail markets provide great opportunities for AGT in the packaging and distribution of small pack and canned products, including our current offerings in pasta, rice and bulgur as well as private label for all of our products. We are optimistic about the potential sales and revenue streams we seek to generate with the acquisition of CLIC providing a springboard for our new business segment, which may show great potential for growth and return for our company and our shareholders," added Mr. Huseyin Arslan, Executive Chairman of the Board of Directors of AGT. Alliance Grain Traders Inc.
Original source: Alliance Grain Traders
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