Viterra to acquire Gavilon for $1.1 billion

ROTTERDAM, THE NETHERLANDS — Viterra Ltd. introduced it has reached an settlement to amass lots of the property of Omaha, Nebraska, US-based Gavilon from Marubeni Corp. for $1.125 billion, plus working capital.

Gavilon originates, shops and distributes grains, oilseeds, in addition to feed and meals components, to meals producers, livestock producers, poultry processors, soybean processors and ethanol producers worldwide. The corporate has 105 grain storage services and complete grain storage capability of 345.447 million bus, based on Sosland Publishing’s Grain & Milling Annual 2022.

Gavilon was established in 2008 with the sale by Conagra Meals Inc. of its Buying and selling and Merchandising enterprise to Ospraie Administration LLC Particular Alternatives Fund in a $2.1 billion transaction. With the sale, the enterprise was renamed Gavilon LLC. The enterprise was later acquired by Marubeni for $2.7 billion in 2013.

Right this moment, Gavilon’s asset community is situated in key rising areas throughout the USA, with entry to main railroads, rivers and ports. It additionally has worldwide operations in Mexico, South America, Europe and Asia, together with an oblique minority possession curiosity in two port terminals situated in Kalama, Wash., and Portland, Ore.

In keeping with Marubeni, the transaction won’t embody eight grain elevators held and operated by Gavilon within the northern United States. These elevators shall be transferred to Columbia Grain Worldwide, a subsidiary of Marubeni. Moreover, a part of the fairness curiosity of Kalama Holdco, LLC, a three way partnership grain export terminal enterprise on the US West Coast that’s held by Gavilon, shall be transferred to Columbia Grain Worldwide. Gavilon’s fertilizer enterprise additionally just isn’t included within the transaction and shall be transferred to Marubeni America Corp.

“The addition of Gavilon helps our long-term technique of considerably rising our presence in the USA, one of many main producing and exporting areas, which is able to additional strengthen our world community,” mentioned David Mattiske, chief govt officer of Viterra Ltd. “The mixture of the Gavilon and Viterra origination companies will allow us to offer extra worth and suppleness to our prospects. We can quickly improve our sustainable provide chains, present larger ranges of high quality management and reliability, whereas creating thrilling alternatives for our prospects and staff.

“We stay up for welcoming the workers of Gavilon to the Viterra crew, and additional strengthening the profitable enterprise and industrial relationships Gavilon has constructed with producers and customers.”

Peter Mouthaan, chief monetary officer at Viterra, mentioned the transaction demonstrates “the continued help of our shareholders to execute on alternatives that ship vital development for our enterprise, whereas sustaining a sturdy stability sheet.”

Viterra is the crop buying and selling enterprise spun out of Glencore again in November 2020. Viterra has greater than 17,500 staff working in 37 nations, and its community of storage, processing and transport property connects producers and customers to produce sustainable, traceable and quality-controlled agricultural merchandise. In keeping with the Grain & Milling Annual 2022, Viterra has a complete of 85 grain storage services with a complete storage capability of 120.36 million bus in North America.

Marubeni mentioned the choice to promote Gavilon’s grain enterprise adopted re-evaluations of its grain enterprise methods and objectives and mirrored the uptrend within the grain provide trade and Gavilon’s good outcomes just lately. As a part of its post-divestiture technique, Marubeni mentioned it’s “trying to improve the power of its grain enterprise to satisfy demand for grain within the Asian market, particularly Japan, a spotlight space for the enterprise.”

“To realize this, Marubeni will work to additional strengthen its grain enterprise’s commerce circulation based mostly on its grain dealing with operations within the northwest United States, and exportation from the PNW as its two main strengths,” Marubeni mentioned. “Furthermore, in response to heightened client consciousness and concern over well being and environmental points, Marubeni is concentrating on reinforcing the dealing with of specialty crops, in addition to growing its processing and downstream companies. Marubeni has positioned the eight grain elevators within the northern United States, and fairness curiosity within the JV grain export terminal enterprise within the PNW which are to be transferred to CGI, because the focal factors inside the abovementioned technique.”

The transaction is predicted to shut within the second half of 2022.

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