Mergers and Acquisitions

Viterra Buys Assets Of Gavilon Grain

Viterra Limited, the crop-trading business spun out from Glencore, the world’s largest commodities broker, announced January 24 that it has agreed to acquire the grain-trading business of Gavilon, which also operates river terminals, from Japanese-based firm Marubeni American Corporation. The purchase price for the acquisition of Gavilon was $1.125 billion, plus working capital, subject to customary purchase price adjustments. 

Gavilon is based in Omaha, Neb., 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 asset network is located across the United States, with access to major railroads, rivers and ports. It 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, 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, chief financial officer at Viterra Limited, said. 

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