Fort Capital Advises Timber Investments in Acquisition of Control of Columbia Containers

Mergers, Acquisitions & Divestitures
Transaction Details

Fort Capital Partners is pleased to announce that Timber Investments Ltd. (Timber) has completed the purchase of a controlling interest in Columbia Containers Ltd. (CCL, or the Company) from Providence Grain Group (PGG). Financial terms of the private transaction were not disclosed.

CCL operates a specialty agri products container transloading facility on the south shore of Burrard Inlet in Vancouver, BC. The Company recently completed a major capital upgrade which will result in a substantial capacity increase to 1.5 million tonnes of annual throughput and includes the ability to more efficiently handle unit trains. CCL also provides freight forwarding services to PGG and other grain shippers through its wholly owned subsidiary, CWest Solutions Inc.

Investment in CCL complements Timber’s interests in two other west coast logistics operations. Timber is the principle investor in Fibreco Export Inc., a bulk wood pellet and grain loading facility located on the north shore of Burrard Inlet. The Fibreco facility, capable of receiving unit trains and loading out panamax sized vessels, will have an annual capacity of 3.6 million tonnes when its current expansion project is completed. Timber also indirectly operates Lulu Island Terminal, a wood product container transloading facility located in Richmond, BC, which is the largest purpose-built facility of its type on the west coast of Canada.

Fort Capital Partners and Blake, Cassels and Graydon LLP provided financial and legal advice to Timber Investments in connection with the investment in CCL.

ABOUT COLUMBIA CONTAINERS LTD.

Strategically located on over 14 acres of land on Port Metro Vancouver’s South Shore, Columbia Containers is Canada’s largest grain container transloading facility. With the completion of a recent expansion, CCL has two separate loading systems that will allow the efficiency and capacity to handle 1.5 million tonnes of agri products per year, receive unit trains on site, and store over 10,000 tonnes of grain. The company also has a fully functional EDI supported container depot capable of storage, preparation and repairs. CCL works with CP Rail to help its customers receive unit train discounts.

CCL has built its business on adhering to the most demanding quality control standards, and exceeding client expectations. One of CCL’s core markets is the Japanese malt market, which has some of the most meticulous standards and demanding timelines in the industry — expectations the Company aims to exceed for all their customers’ shipments.

ABOUT TIMBER INVESTMENTS

Timber Investments Ltd. is the privately-owned investment company of the Thorlakson family of Vernon, BC. In addition to its investments in logistics businesses, Timber has a number of other investments, including in the real estate and forest products industries. Wholly-owned Tolko Industries Ltd. is a leading manufacturer of a wide range of forest products for customers around the world, including lumber, plywood, veneer, oriented strand board, co-products, biomass power, and a growing number of specialty wood products.

ABOUT PROVIDENCE GRAIN GROUP

Providence Grain Group Inc., established in 2002, is one of the few producer-owned agricultural commodity businesses in Canada. PGG offers grain drying, storage, off farm pickups, specialized marketing services, hedging, futures and options. PGG’s shareholders are producers, providing a solid foundation for the farmers who trust PGG’s expertise and rely on the solutions it provides at the field level, as well as for buyers who are confident in PGG products and the service it provides. PGG elevators located across the prairie provinces are full service, primary elevators licensed and bonded by the Canadian Grain Commission. In addition to its grain merchandising business, PGG also owns a minority interest in Columbia Containers Ltd.