Viterra to acquire Gavilon for $1.1 billion

ROTTERDAM, THE NETHERLANDS — Viterra Ltd. introduced it has reached an settlement to amass lots of the belongings 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 substances, 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, in accordance with 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.

At this time, Gavilon’s asset community is situated in key rising areas throughout america, 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 accordance with Marubeni, the transaction is not going to embrace eight grain elevators held and operated by Gavilon within the northern United States. These elevators might 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, might be transferred to Columbia Grain Worldwide. Gavilon’s fertilizer enterprise additionally is just not included within the transaction and might be transferred to Marubeni America Corp.

“The addition of Gavilon helps our long-term technique of considerably growing our presence in america, one of many main producing and exporting areas, which can 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 adaptability 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 workers.

“We sit up for welcoming the staff of Gavilon to the Viterra group, and additional strengthening the profitable enterprise and industrial relationships Gavilon has constructed with producers and shoppers.”

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

Viterra is the crop buying and selling enterprise spun out of Glencore again in November 2020. Viterra has greater than 17,500 workers working in 37 nations, and its community of storage, processing and transport belongings connects producers and shoppers to produce sustainable, traceable and quality-controlled agricultural merchandise. In accordance 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 lately. As a part of its post-divestiture technique, Marubeni mentioned it’s “trying to improve the flexibility of its grain enterprise to fulfill demand for grain within the Asian market, particularly Japan, a spotlight space for the enterprise.”

“To attain this, Marubeni will work to additional strengthen its grain enterprise’s commerce stream primarily based 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 shopper 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 can be to be transferred to CGI, because the focal factors inside the abovementioned technique.”

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