Can-Oat Buys Barrhead Plant

SASKATOON - Jun 22/06 - SNS -- Can-Oat Milling Inc., a wholly owned subsidiary of Saskatchewan Wheat Pool Inc., closed on its purchase of the ConAgra Oat Milling facility located in Barrhead, Alberta.

Constructed in 1989, the full service facility is organically certified and processes 25,000 metric tons (MT) of finished oat products such as oat flakes, oat flour and oat bran as well as barley flakes and flour, pot barley and pearl barley. As a result of this acquisition and Can-Oat's current expansion of its Portage la Prairie plant, Can-Oat's total milling capacity will exceed 375,000 MT annually.

Karl Gerrand, President of Can-Oat Milling said, "The Barrhead facility will bring on-line Can-Oat's third milling operation and its second finishing facility capable of manufacturing flakes, flour and bran. The addition of this mill complements our current expansion project in Manitoba by facilitating immediate entry into the growing organic oat market, while at the same time competitively positioning Can-Oat to supply the west coast and new offshore export markets."

The acquisition also supports product expansion for Can-Oat, which to date has been solely focused on oat processing. The Barrhead facility processes a number of barley-based food products, allowing Can-Oat to expand its product offerings to new and existing customers. Geographical expansion into Alberta improves Can-Oat's strategic position, diversifies its raw material sourcing, and offers opportunities to leverage technologies, expertise and efficiencies throughout its network of processing facilities across Western Canada.