U.S. farm co-operative Growmark is set to boost its space in the Ontario farm supply market with a deal for the half of fuel supplier UPI Energy it doesn’t already own.
Growmark on Monday announced it would buy the remaining 50 per cent stake in Guelph-based UPI from Suncor Energy for an undisclosed sum. UPI markets home heating fuels, farm fuels, propane and lubricants throughout Ontario.
UPI’s holdings in Ontario include Beselaere Fuels of Delhi, Scott Fuels of Woodstock and McCullough Fuels of Paisley, all of which operate in the farm fuel market and also supply residential and commercial/industrial customers.
“The agreement aligns with Growmark’s focus on growing our petroleum business in Ontario,” Kevin Carroll, Growmark’s vice-president for energy and logistics, said in a release.
The acquisition deal also sets up long-term agreements for Calgary-based Suncor to supply Growmark with petroleum in Ontario, the co-op said.
Bloomington, Illinois-based Growmark took its initial 50 per cent stake in UPI in 1994, when it bought the assets of United Co-operatives of Ontario (UCO).
UCO and Suncor had set up UPI as a joint venture in 1991, to serve as a fuel distribution system for members of UCO’s farmer co-op network. — AGCanada.com Network