Saskatchewan Wheat Pool announced the sale of four of Heartland Feeds' milling facilities to Regina-based Masterfeeds, which will allow the Pool to pay about $10 million towards its debt.

The four mills are based in Regina, Taber and Picture Butte, Alta., and Dauphin, Man. Heartland will still retain two feed mills in North Battleford and Bruno, to help supply Heartland's pork operations, which are not included in this sale.

"The Pool will use net proceeds from the sale of approximately $10 million to pay down debt, which is consistent with our objective to reduce debt through divestiture," said CEO Mayo Schmidt, adding the Pool will work together with Masterfeeds as opportunities arise.

The transaction is expected to close by the end of November, and the Pool will record an after-tax loss of $8 million, or 21 cents per share against its second quarter results.

Masterfeeds indicated there will be a smooth transition for all employees, dealers, suppliers and customers.

Masterfeeds is one of Canada's largest animal nutrition companies, and is owned by Ag Processing Inc. of Omaha, Neb., the world's largest co-operative soybean processor and third largest vegetable oil refiner in the U.S. It is owned by 250 local co-operatives and eight regional co-operatives representing more than 300,000 farmers in the U.S. and Canada.