APLP has a canola crush capacity of 1000 tonnes per day, and with immediate access to North America's major rail lines, it is well situated to source raw materials domestically and supply North American end-use markets.

Under the terms of the Purchase and Sales Agreement, Viterra will acquire the assets of APLP for C$64 million plus working capital.

The agreement is subject to Canadian Competition Bureau approval.

The transaction is anticipated to close on June 25.

"This acquisition is an ideal fit for Viterra. It bolsters our presence in food processing and complements our position as Canada's leading canola exporter," said Mayo Schmidt, president and CEO.

"It is consistent with our overall strategy to grow our company's value-added capabilities."

Canola oil is low in trans fats and saturated fats and has one of the healthiest fat profiles of any of the major vegetable oils.

Significant growth for canola oil is expected as it replaces soy oil in food applications.

In a statement from Viterra, the company said the Ste. Agathe plant is a scalable operation with future growth and expansion opportunities to service the growing markets for healthy vegetable oils.

"Through this transaction, we will be able to further leverage our value chain to meet increased crush demands and supply an expanding healthy vegetable oil market," said Karl Gerrand, Viterra's senior vice-president for food processing.

"APLP's management team and staff have an impressive track record of execution and we look forward to working together to grow the business and its customer base."