The acquisition is set to benefit Maple Leaf Green World in attaining its goal of success in terms of quality and profitability in the first years of production
Image: Maple Leaf to acquire Woodmere Nursery. Photo: Courtesy of hat3m/Pixabay.
Maple Leaf Green World has signed a letter of intent (LOI) to acquire all the assets and the business of Woodmere Nursery, a seedlings producing company in Canada.
Financial details of the deal have not been disclosed.
The proposed transaction will enable Maple Leaf to obtain the required funding to complete its previously announced unfinished Talkwa facility and space to expand, and offer an additional source of income through Woodmere’s operations.
Maple Leaf Green World claims that it will benefit from Woodmere management team’s assistance to its goal of success in terms of quality and profitability in the first years of production.
The proposed deal is subject to the completion of satisfactory due-diligence, approval from Aequitas Neo Exchange and by the approval of non-interested directors of Maple Leaf Green World.
Woodmere produces up to 13 million seedlings per annum
Woodmere Nursey owns 80 acres of land with 52 greenhouses on it. The company produced its first reforestation seedlings in 1985. At present, the company grows between 12.5 and 13 million seedlings annually in seven acres of computer controlled greenhouses.
The seedlings are grown in containers with single cell filled with sterilised growing media. It has also cold storage capacity of nine million seedlings.
Maple Leaf Green World said that the production system of Woodmere Nursery is based on Total Quality Management System where Quality related to clients’ needs is its corporate vision. Inhouse Quality Assurance Programs from growing media to shipping to the field sites are considered to be key to the company’s success.
Through its 35 years of operation, Woodmere Nursery offers seedlings from Mackenzie to Prince Rupert. Its clients include the Province, Federal Government and the Forest Industry. The company also produces seedlings for the mining the LNG infrastructure industry.
Maple Leaf claims to be in discussions with several lenders who are interested in providing finance to complete the proposed deal.