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Viterra Limited to acquire Gavilon

Companies agree to $1.13 billion purchase price for grain and ingredients business.

Viterra announced Jan. 26 that it, through a wholly-owned subsidiary, has entered into a stock purchase agreement with Marubeni America Corporation, a wholly-owned subsidiary of Marubeni Corporation, to acquire the grain and ingredients business of Gavilon Agriculture Investment Inc. (Gavilon).

The agreed purchase price for the acquisition of Gavilon is $1.13 billion, plus working capital, and is subject to certain customary purchase price adjustments.

Gavilon is based in Omaha, Neb. and 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’s leading asset network is located in key growing areas across the U.S., 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 and Portland, Oregon.

“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 Limited.  “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.”  

He continued, “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 Limited, commented, “This 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.”

Funding for the agreed purchase price and a portion of the assumed working capital has been secured through the signing of a committed acquisition financing facility, Mouthaan added. The remainder of the working capital will be financed by using proceeds from other committed financing facilities and cash on hand, including existing available undrawn committed credit lines amounting to approximately $3.6 billion as of Dec. 31, 2021.

 

The transaction is subject to customary closing and regulatory approvals and is expected to close in the second half of 2022. 

TAGS: Business
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