On February 4, 2019, Providence Grain Group Inc. (“PGG”) completed the sale of a 51% interest in Columbia Containers Ltd. (“CCL”) to Timber Investments Ltd. (“Timber”), with PGG retaining the remaining 49% ownership interest. The sale of its 51% interest in CCL enables PGG to recapitalize its balance sheet, reduce its cost structure and position it to pursue its core grain merchandising business growth initiatives.
CCL, which operates an agri products container transloading facility on the south shore of Burrard Inlet in Vancouver, British Columbia, has 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 handle unit trains more efficiently. CCL also provides freight forwarding services to PGG and other grain shippers through its wholly owned subsidiary, CWest Solutions Inc.
PPG was advised, with respect to this transaction, by their in-house corporate legal counsel, Gayle M. Kelly, as well as by a team from Miller Thomson led by Robert Anderson (Corporate/M&A), and including Kevin Trumpour and Robert Stewart (Corporate/M&A), Michael Morcom and Nabil Virji (Financial Services), Bryant Frydberg and Carolyn Hogan (Corporate Tax), Emily McClintock (Private Client Services) and Spencer Einhorn (Articling Student).