Viterra Limited has secured the grain and ingredients business of Gavilon Agriculture Investment, Inc. from Marubeni Corp for US$1.125bn plus working capital. It is understood that Marubeni will keep Gavilon’s fertilizer operations and certain grain export facilities.
The deal, which will see Gavilon incorporated under Viterra’s network and branding, makes the Glencore-owned business one of the most formidable grain handlers in the world and significantly expands its reach in North America.
Gavilon, headquartered in Omaha, Nebraska, originates, stores and distributes grains and oilseeds, as well as feed and food ingredients. In addition to more than 90 assets in the US, the company also has operations in Mexico, South America, Europe and Asia. Viterra, one of Canada’s largest grain handlers, was formed in 2007 when the Saskatchewan Wheat Pool acquired Agricore United. In 2012, Swiss commodity trading giant Glencor purchased the Canadian grain firm, and in 2020, Glecore’s global ag business, spanning 37 countries, was rebranded under Viterra.
“Gavilon’s grain and ingredients business fits within our value chain and aligns well into our core business, and also aligns with our strategy to increase producer direct origination,” a Viterra spokesperson told this publication. “This further strengthens our global network by providing us a material presence in every major producing and exporting market in the world, and makes us one of the largest origination businesses in our industry.