Buying a Food-Processing or Cold-Storage Facility in Alberta

1. Define the acquisition perimeter

Separate the real estate, shares or operating assets, inventory, recipes and intellectual property, customer and supplier contracts, employees, licences, permits, certifications, equipment leases and working capital. Identify the seller, property owner and contracting entity for each component.

A single asking price or marketing package does not establish what transfers. Have legal, tax, accounting and regulatory advisors structure the transaction and allocations.

• Real property
• Business or shares
• Equipment
• Inventory
• Permissions
• Working capital

2. Freeze the buyer's exact food activity

Record every product and commodity, process, treatment, packaging and labelling step, allergen profile, temperature regime, production volume, storage activity and intended intraprovincial, interprovincial, import or export market.

A former food use, existing licence number, inspection history or seller statement does not establish approval for the buyer's person, products, activities or market channels.

3. Build the federal and provincial permission path

Use CFIA's current licensing and commodity tools to determine whether the buyer requires an SFC licence, preventive controls, a written preventive control plan, traceability or establishment information. CFIA states an SFC licence is not transferable to another person and changes in activities, commodities or establishments can require amendment.

Ask AHS and the applicable authority about Food Handling Permit and plan-review requirements for the actual operation. Keep CFIA, AHS, municipal, export, commodity and private certification workstreams distinct.

4. Verify the property and approved use

Order title, plans, instruments, approved-use and permit records. Ask the municipality about the proposed process, equipment, storage, truck activity, emissions, odour, waste, dangerous goods, exterior systems and building changes at the exact address.

Industrial zoning, a business licence, prior occupancy or a listing phrase such as food grade is not proof that the buyer's operation is permitted or that construction and occupancy requirements are satisfied.

5. Investigate refrigeration and process systems

Create an equipment and systems register for refrigerants and charge, compressors, vessels, piping, controls, relief devices, detection, ventilation, alarms, cold rooms, freezers, condensers, boilers, steam, compressed air and backup systems. Obtain design, registration, inspection, maintenance, repair and incident records.

For ammonia systems, engage qualified refrigeration, pressure-equipment, safety and environmental professionals. ABSA's requirements address regulated pressure equipment and integrity management; an ABSA record is not a whole-building or food-safety certification.

6. Prove water, wastewater and utility fit

Map incoming water quality and capacity, drainage zones, floor drains, grease and solids interception, wastewater flow and load, pH, temperature, fats, oils and grease, pretreatment, sampling, sewer agreements, discharge limits and waste hauling. Confirm the applicable municipal and provincial evidence.

Record electrical service, peak demand, gas, steam, refrigeration load and backup requirements with utility and professional confirmation. Service ratings, nearby infrastructure and seller bills are not capacity commitments.

7. Reconcile condition, environment and economics

Coordinate building, roof, envelope, floors, sanitary surfaces, drainage, structure, fire protection, ventilation, docks, yards, pest exclusion and capital history with Phase I or further environmental work appropriate to the site and operations.

Normalize property and operating cash flow separately. Quantify refrigeration replacement, deferred maintenance, compliance work, shutdown, commissioning, inventory, working capital and transition costs instead of treating historical EBITDA or a cap rate as a complete acquisition model.

8. Make closing operationally conditional

Tie title, financing, permissions, professional reports, equipment tests, environmental work, contracts, employees, inventory, licences, insurance, utilities, commissioning and possession to named evidence, responsibility and deadlines. Maintain a day-one operating plan and a no-operation fallback if a permission is delayed.

Commercially coordinates licensed commercial-property and business-real-estate brokerage. It does not issue licences, approve food products, certify refrigeration or food safety, audit earnings or provide legal, tax, accounting, engineering or environmental opinions.