Following up on "Farmers Betting on Corn Storage (and how not to sell a silo)" we have some big money doing the storage thing. Backround after the jump.
Gavilon to buy Union Elevator PNW grain elevators
U.S. grain firm Gavilon Grain said on Thursday it will buy Union Elevator and Warehouse's 16 grain elevators in the Pacific Northwest, the company's second big purchase of U.S. grain facilities in the last six months.Here's the earlier acquisition that made Gavilon the third largest grain handler (behind Cargill and ADM).
Privately held Union Elevator, where employees own a significant share of the company, approved the transaction on Wednesday, with sale expected to be completed during the second quarter of 2011.
The purchase of 16 elevators at 12 locations in eastern Washington will expand Gavilon's grain capacity by 8.4 million bushels....MORE
From the Kansas City Business Journal:
Kansas City ag giant DeBruce agrees to sell to Gavilon
DeBruce Cos., the Kansas City area’s third-largest private company, will sell to Gavilon LLC. The companies did not disclose the value of the deal.
Omaha-based Gavilon has a definitive agreement to buy Kansas City-based DeBruce. As part of the deal, DeBruce will operate as a subsidiary of Gavilon and be led by present CEO and founder Paul DeBruce. COO Larry Kittoe will continue in that role with DeBruce Grain.
DeBruce reported $4.6 billion in revenue for 2009. It employs 550 people; subsidiaries include DeBruce Feed Ingredients Inc., Creston Bean Processing LLC and DeBruce Transportation.
The companies said the combination will result in one of the nation’s leading commodity-management firms and third-largest grain storage network.
The acquisition nearly doubles Gavilon’s grain storage capacity, adding DeBruce’s 140 million bushels in 23 facilities to Gavilon’s 150 million bushels in 88 facilities....MORE