Gavilon agrees to buy grain handler DeBruce

U.S. agribusiness firm Gavilon Grain will buy DeBruce Companies under an agreement that will double Gavilon’s grain storage capacity and create the third-largest U.S.
grain storage network.

Gavilon announced the deal last Tuesday and the transaction is expected to close in November, pending regulatory approval. Financial terms of the deal were not released.

“This transaction will result in a company that is extremely well-positioned to meet rapidly growing demand for agricultural resources worldwide, by expanding our North American footprint and nearly doubling access to supply,” Greg Heckman, Gavilon’s president and chief executive, said in a statement.

Gavilon is a commodity trading and grain storage business that ConAgra Foods sold to private investors in 2008.

DeBruce, which is based in Kansas City, Missouri., will become a Gavilon subsidiary. DeBruce has grain elevators in Kansas, Iowa, Nebraska, Texas, Kentucky, Oklahoma, Mississippi, Alabama, Indiana, Wisconsin and Mexico. It also has feed mills and a fertilizer distribution network.

The DeBruce purchase will raise Gavilon’s grain storage capacity to nearly 300 million bushels, making it the No.

3 U.S. grain handler after ADM Grain Co., a unit of Archer Daniels Midland Co (ADM.N), and privately held Cargill Inc., according to data from Milling & Baking News, an industry publication.

Under the deal, DeBruce founder and chief executive Paul DeBruce and chief operating officer Larry Kittoe will continue to serve in their current roles. Paul DeBruce will join Gavilon’s board of directors.

DeBruce Companies will keep its name, and Paul DeBruce said customers would not see any changes after the sale.

DeBruce also said the sale to Gavilon would not result in any layoffs.

Gavilon has about 1,100 employees and DeBruce has 550.