July 12, 2013
Except its energy business, Marubeni Corporation has purchased all of the assets and businesses of Gavilon Holdings LLC, for approximately US$2.7billion which completes the previously announced acquisition of Omaha, Nebraska-based Gavilon.
Marubeni obtained all necessary approvals from relevant competition authorities, including the Chinese competition authority, and fulfilled all other closing conditions as agreed upon in the Equity Interest Purchase Agreement.
Marubeni's grain business operates as part of its Food Materials Division. The division is the top trader among general trading companies with annual grain trading volume of about 20 million tonnes, Marubeni said, and the company is bolstering efforts to develop sales operations worldwide, along with measures targeting grain production markets.
Privately-held Gavilon, one of the largest grain, processing and merchandising companies in the US, has grown rapidly with a number of significant actions, including acquisitions and capital expenditures. Gavilon operates 300 facilities and regional offices worldwide. The company estimated its business mix, as measured as share of earnings, at 62% grain and ingredients (mostly origination, storage and distribution), 20% energy (storage, transportation and logistics) and 18% fertiliser (distribution). According to the 2012 Grain & Milling Annual, Gavilon was the third largest grain storage company in the US.