Winnipeg-based Richardson International expands into Europe

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This article was published 25/06/2017 (2493 days ago), so information in it may no longer be current.

Richardson International Ltd. has made its first foray into Europe with the acquisition of an English oat milling business, and a senior company official said Monday it’s hopefully just the beginning.

“I think we see this as a great starting point, a beachead if you will,” company president and CEO Curt Vossen said Monday after the company announced the purchase of Bedford-based European Oat Millers for an undisclosed sum.

Vossen said not only are there other expansion opportunities in Europe, but the company can also use it as a base to access other parts of the world.

“So yeah, this is, we hope, one of several more opportunities that we’ll encounter in the future.”

He said the company isn’t pursuing any other overseas acquisitions at the moment. Instead, it’s focusing on integrating European Oat Millers into its Richardson Milling division, which also includes three oat-processing plants in Canada and one in the United States.

“We’ll walk before we run. There’s a lot of integration that goes on. This is not a small company, and it’s a new environment for us. So there’s a lot of learning to do in terms of the marketplace and the normal way of doing business in a different part of the world on a day-to-day basis.”

Vossen said the potential benefits of expanding into Europe extend beyond Richardson International.

“I think it’s also great for Winnipeg that we, headquartered here, can grow outside the traditional sandbox of Canada or Western Canada… So let’s see what we can do, and see if we can export some good old Canadian know-how to other parts of the world.”

Manitoba Chamber of Commerce president and CEO Chuck Davidson said the deal illustrates the kind of opportunities that can arise from the new free trade agreement between Canada and the European Union.

“Those companies that a little bit ahead of the curve, like Richardson, are going to make some inroads. So this is a good sign for Manitoba.”

Davidson said it also underscores how big a player Richardson International has become.

“They really are a global, international player. I think we may look at them in Winnipeg and in Manitoba as that sort of home-grown company. But when you look at the size of their portfolio and the size that they are, this is really not a surprise that they’re going into foreign markets. And the fact they’re looking at going into more into the future speaks… highly of the business model they’ve put together.”

He said hopefully Richardson International’s expansion into European, and the exposure that will generate for Manitoba will help make it easier for other local companies to do the same.

European Oat Millers is a family owned firm and Europe’s second largest oat miller. It has two processing plants in Bedford, and produces a wide range of oat products, including various oat flakes, flour and groats (hulled or crushed grain), as well as wheat and barley flakes and extruded ingredients and products. Its products are sold throughout the United Kingdom, with exports to continental Europe, Africa, the Middle East and Asia.

Vossen said all of the company’s employees have been retained, and the company’s previous owners and founders — Bill and David Jordan — have been invited to serve on the new firm’s board of directors. The newly formed subsidiary, Richardson Milling U.K., hopes to build on the investments the previous owners have already made, including increasing manufacturing capacity.

Bill Jordan said in a written statement that he and his brother are very proud of the business they have successfully grown over the past three decades.

“We are pleased to be passing it on to a similar family-owned business that shares both our vision for growth and our core values, and we look forward to watching the business evolve,” he added.

Richardson International entered the oat milling business in 2013 with the acquisition of three Canadian oat processing plants in Portage la Prairie, Martensville, Sask., and Barrhead, Alta., and one plant in South Sioux City, Neb. It is the largest oat miller in North America.

The company is also a worldwide handler and merchandiser of major Canadian-grown grains and oilseeds, and a vertically-integrated processor and manufacturer of both oats and canola-based products.

murray.mcneill@freepress.mb.ca