Viterra has entered into a stock purchase agreement with Marubeni America Corp., a wholly-owned subsidiary of Marubeni Corp., to acquire the grain and ingredients business of Gavilon Agriculture Investment, Inc.
The agreed purchase price for the acquisition of Gavilon is $1.125 billion, plus working capital, and is subject to certain customary purchase price adjustments.
Gavilon is based in Omaha, NE, 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.
Acquisition supports U.S. presence for Viterra
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, as well as an indirect minority ownership interest in two port terminals located in Kalama, WA, and Portland, OR.
“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, CEO 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.”
“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, CFO 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.
“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," says Mouthaan.
Funding for the remainder of the working capital will be financed by using proceeds from other committed financing facilities and cash on hand, he continues, including existing available undrawn committed credit lines amounting to approximately US $3.6 billion as of 31 December 2021.
The transaction is subject to customary closing and regulatory approvals and is expected to close in the second half of 2022.
