June 19, 2013

Cargill to acquire Northstar's grain storage assets

Cargill is to acquire the grain storage and crop inputs assets of Northstar Grain LLC and associated properties in Decatur in southwest Michigan, US.

The assets will be acquired from Northstar Grain LLC. The transaction is expected to be completed by the end of June, pending routine due diligence. Terms were not disclosed.

"Our ownership of these assets will mean that farmers will gain a competitive market for their grain, as well as an expert crop inputs team from a company that they can rely on," said Ben Breazeale, leader of the Greater Indiana Farm Service group of Cargill AgHorizons US. "We also bring to the table industry-leading risk management products, personalised on-farm grain marketing services and excellent customer service."

The assets include 4.5 million bushels of storage space for corn, soy and wheat, and a crop inputs business. The site is served by the Norfolk Southern railroad, which provides access to markets in the eastern and south eastern US.

Cargill will initially invest about US$3 million in upgrades to the facility to complete the construction of a 500,000 bushel storage bin and increase the capability to ship 75-car unit trains.