New Owners of Merit Functional Foods Plant Reveal Future Plans

The newly acquired Merit Functional Foods facility in Winnipeg will not reopen as a plant protein processing operation. The state-of-the-art plant, which focuses on pea and canola processing, was established in 2021 but went into receivership by March 2023.

Reasons for Closure

Management cited several challenges contributing to the plant’s downfall, including escalating raw material costs, rising interest rates, and diminished investment appetites from lenders. They also pointed to significant delays in the commissioning of new products, taking up to 12 times longer than anticipated.

Asset Acquisition

Court documents filed by the receiver, PricewaterhouseCoopers (PwC), indicate that an unnamed Manitoba-based company has entered an asset sale purchase agreement. The agreement includes all land, buildings, equipment, and other assets related to the facility, pending court approval to finalize the deal.

The Mystery Buyers

Former Merit co-CEOs, Ryan Bracken and Barry Tomiski, have recently been identified as the mystery buyers. Bracken shared insights in a LinkedIn post, announcing that the pea and canola processing equipment is being sold off through Carter Wilson Equipment Services. He expressed enthusiasm for repurposing the facility, stating, “Looking forward to repurposing the Merit Functional Foods facility into a positive economic engine for Manitoba!”

Future Plans Remain Unclear

Speaking to AgFunderNews, Bracken noted, “At this point, we are not making our plans for the facility public. More news will come at a later date.” Importantly, he clarified, “Our intent is not to start it back up again as a plant protein business.”

Further Reading

Receiver strikes deal with mystery buyer for Merit Functional Foods plant in Winnipeg