September 7, 2010

Alliance Grain Traders to acquire assets and real property from Balco Grain Services

Alliance Grain Traders, Inc., a Canada-based crop processor, has entered into a letter of intent to acquire all of the assets of Balco Grain Services and certain real property from Balco Holdings.

The transaction including planned capital expansions and improvements is valued at approximately CAD10 million (US$9.53 million) in cash.

Balco Grain Services is a joint venture between Balco and growers in the mid-north region, while Balco is a processor and exporter of high grade oaten hay and grain products. Both Balco Grain Services and Balco Holdings are based in Australia.

The assets to be acquired include real property, vertical and horizontal storage for pulses and grains and related handling equipment located at Bowmans, South Australia. Pursuant to the transaction, the acquired assets and facility will be owned and operated by Alliance Grain Traders' wholly owned subsidiary, Australia Milling Group.