Released on December 2, 2010
Today, the Government of Saskatchewan announced the Agricultural Credit Corporation of Saskatchewan has sold Thomson Meats Ltd. of Melfort.
The company has been purchased by a corporation led by the current Thomson Meats Ltd. Chief Executive Officer Paul Kowdrysh, marking an end to the provincial government's ownership in the company.
"Our role as government is to create a positive economic climate for businesses to succeed, not to be involved in owning private companies," Agriculture Minister Bob Bjornerud said. "Getting Thomson Meats Ltd. back into the hands of industry is a positive step in that direction."
The buyers plan to continue operating Thomson Meats Ltd. in Melfort.
The provincial government first solicited interest in the sale of Thomson Meats Ltd. in May 2008. The principles that guided government's efforts to sell the company were achieving maximum value for the taxpayer and allowing all interested parties the opportunity to purchase.
From 1996 - 2007, the previous provincial government invested $11.9 million in Thomson Meats Ltd. via share purchases, debentures, and grants. The Government of Saskatchewan never collected a dividend nor was it ever repaid for any of the debentures provided to the company. Thomson Meats Ltd. has not recorded a profit in any year since 1996 when the government first invested in the company.
Bjornerud said he is optimistic that returning this business to private hands will improve its profitability in the future.
The Agricultural Credit Corporation of Saskatchewan owned 100 per cent of the shares in Thomson Meats Ltd. prior to its sale. The province received $246,972.05 for the sale and the purchaser has agreed to assume all debt and liabilities of the company.
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For more information, contact:
Patrick Boyle
Agriculture
Regina
Phone: 306-787-2359
Email: Patrick.Boyle@gov.sk.ca