This site is part of the Informa Connect Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Insight into agtech and agribusiness, powered by the latest information and scientific research.

Viterra Limited to acquire Gavilon

Share this article

Through a wholly-owned subsidiary, Viterra Limited 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.

The agreed purchase price for the acquisition of Gavilon is USD$1.125 billion, plus working capital, and is subject to certain customary purchase price adjustments.

In a statement, Marubeni Corporation said Gavilon’s fertilizer business will be transferred to Marubeni America Corporation.

Gavilon is based in Omaha, Nebraska, U.S. and originates, stores and distributes grains and oilseeds, as well as feed and food ingredients, to food manufacturers, livestock producers, poultry processors, soybean processors and ethanol producers worldwide.

Gavilon’s 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 and Portland, Oregon.

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. Funding for 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 USD$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.

Read our latest New AG International issue, here.

RETURN to home page, here.

Share this article