Viterra to Acquire Gavilon for USD1.13bn
Viterra Ltd. announced it has reached an agreement to acquire many of the assets of Omaha, Nebraska, US-based Gavilon from Marubeni Corp. for USD1.125bn, plus working capital.
Gavilon originates, stores and distributes grains, oilseeds, as well as feed and food ingredients, to food manufacturers, livestock producers, poultry processors, soybean processors and ethanol producers worldwide.
Gavilon was established in 2008 with the sale by Conagra Foods Inc. of its Trading and Merchandising business to Ospraie Management LLC Special Opportunities Fund in a USD2.1bn transaction. With the sale, the business was renamed Gavilon LLC. The business was later acquired by Marubeni for USD2.7bn in 2013.
Today, Gavilon’s asset network is located in key growing areas across the United States, with access to major railroads, rivers and ports. It also has international operations in Mexico, South America, Europe and Asia, along with an indirect minority ownership interest in two port terminals located in Kalama, Washington, US, and Portland, Oregon, US.
“The addition of Gavilon supports our long-term strategy of significantly increasing our presence in the United States, one of the major producing and exporting regions, which will further strengthen our global network,” said David Mattiske, chief executive officer of Viterra Ltd. “The combination of the Gavilon and Viterra origination businesses will enable us to provide more value and flexibility to our customers. We will be able to rapidly enhance our sustainable supply chains, provide higher levels of quality control and reliability, while creating exciting opportunities for our customers and employees. We look forward to welcoming the employees of Gavilon to the Viterra team, and further strengthening the successful business and commercial relationships Gavilon has built with producers and consumers.”
Peter Mouthaan, chief financial officer at Viterra, said the transaction demonstrates “the continued support of our shareholders to execute on opportunities that deliver significant growth for our business, while maintaining a robust balance sheet.”
Marubeni said the decision to sell Gavilon’s grain business followed re-evaluations of its grain business strategies and goals, and reflected the uptrend in the grain supply industry and Gavilon’s good outcomes recently. As part of its post-divestiture strategy, Marubeni said it is “looking to enhance the ability of its grain business to meet demand for grain in the Asian market, especially Japan, a focus area for the business.”
The transaction is expected to close in the second half of 2022.