A Steal of a Deal for Jewett-Cameron

Jewett-Cameron Trading Company Ltd. is making out like a bandit this week thanks to the federal bankruptcy court’s approval of its bid for the Hillsboro assets of AgriBioTech Inc., a Henderson, Nev.-based seed company in bankruptcy since last year. The deal is expected to close in the next 10 days.

For a mere $1.5 million, the building materials wholesaler is getting more than 13 acres of land adjacent Highway 26 at Glencoe Road, the only remaining undeveloped interchange with access from both sides; 105,000 sf of buildings, half of which are less than two years old; and the rolling stock and multi-million equipment necessary for the new Jewett-Cameron Seed Co.

The land by itself is worth the purchase price, if not three times as much given its likely eventual use as retail, and the seed business was generating $10 million in sales annually before AgriBioTech purchased the full-meal deal in January of 1998 for $6 million in cash and debt (plus 460,000 shares of its now worthless stock) and ten proceeded to double the plant’s capacity.