P&H Acquires Dover Industries
Winnipeg-based Parrish & Heimbecker Ltd. (P&H) acquired Burlington, Ont.-based flour miller Dover Industries Ltd. in December. The family owned grain dealer, flour miller, feed producer and poultry processor paid $19.25 per share (a 39-per-cent premium over the Dec. 4 closing price) for 75 per cent of the outstanding shares it did not already own, or about $100 million. Dover accounts for close to a third of the one billion dollars worth of flour milled in Canada annually.
Dover Industries operates flour mills in Ontario, Nova Scotia, Saskatchewan and Quebec, with projected 2008 revenues of $320 million, and had unaudited operating income of $5 million on $241 million in sales for the nine months ended Sept. 30. “P&H has been a shareholder and wheat supplier of Dover for many years,” says P&H board member John Heimbecker. “We are thrilled at the prospect of putting these two great companies together.”
Last July Dover acquired the Cereal Foods Canada flour mill in Montreal from Mission Woods, Kan.-based Cereal Food Processors Inc., the fourth largest flour miller in the U.S.