Viterra Inc. has signed a definitive agreement to acquire Kansas City, Mo.-based 21st Century Grain Processing for $90.5 million, subject to adjustments for debt, cash and working capital levels at the time of closing. The transaction aligns with Viterra’s integrated business model, and reinforces the mission to leverage its expertise and existing core capabilities to supply its value-added processing operations and strengthen the connections between field and table.
Under the agreement, Viterra’s Canadian milled oats will be sent to 21st Century Grain Processing’s facilities for additional value-added opportunities. 21st Century Grain Processing operates two plants in the central United States, an oat mill in South Sioux City, Neb., and a wheat mill near Amarillo, Texas.
“We are pleased to have reached this agreement with 21st Century Grain Processing, which has established an excellent reputation in the industry for providing healthy, high quality, grain-based food ingredients,” says Karl Gerrand, senior vice president, processing for Viterra. “Its operational focus aligns well with our processing segment, creating opportunities to better serve our customers by optimizing our logistics and realizing production efficiencies. Further, it will position our company to better compete in this industry and meet the continued growth in demand for healthy food products in North America.”
“We are very excited to have this opportunity to bring together the operational capabilities and product offerings of our two companies,” adds Lynn Rundle, chief executive officer for 21st Century Grain Processing. “With Viterra’s strengths and commitment to our industry, this transaction will position us well to continue our growth and success over the long term.”
The transaction is conditioned upon expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
Viterra Acquires 21st Century Grain Processing
June 1, 2010