| Make foodmate.com your Homepage | Wap | Archiver
Advanced Top
Search Promotion
Search Promotion
Post New Products
Post New Products
Business Center
Business Center
 
Current Position:Home » News » Condiments & Ingredients » Oil & Fats » Topic

GrainCorp to acquire two edible oil businesses for $490m

Zoom in font  Zoom out font Published: 2012-08-29  Origin: FBR  Views: 70
Core Tip: Australian grain handler GrainCorp has agreed to acquire Australian oilseed crusher Gardner Smith for A$302m ($313.82m) as well as Goodman Fielder’s commercial oils business Integro Foods for A$170m ($176.65m).
The deals, which represent a combined purchase price of A$472m ($490.47m), are part of the company's strategy to build up scale in edible oil sector in Australia and New Zealand.

Gardner Smith is a leading oilseed crusher in Australia, an operator of bulk liquid port terminals, and runs complementary used-oil recycling and animal feed businesses, while Integro Foods refines and packages edible fats and oils for food industry customers in Australia and New Zealand.

GrainCorp plans to combine the two businesses to create GrainCorp Oils, which will have a capacity to crush more than 300,000 tons of oilseeds per year, with 280,000 tons of annual edible fats and oils refining and packaging capacity.

GrainCorp managing director and chief executive officer Alison Watkins said the purchase of the two businesses is in line with the company's strategic focus on its three core grains - wheat, barley and canola.

"Together they build on GrainCorp's existing supply chain management and grain marketing expertise, and expand our downstream processing operations into canola and other edible oils," Watkins added.

As a part of the agreement, GrainCorp will supply oils and finished goods to Australasian food company Goodman Fielder.

GrainCorp plans to fund the acquisitions through debt, and issue shares of up to A$121m ($125.73m) for Gardner Smith shareholders, and a rights offering worth A$159m ($165.22m).

GrainCorp noted that the acquisitions, which are set to be completed in October 2012, are expected to be earnings per share accretive and generate A$4m ($4.15m) in annual savings.

 
 
[ News search ]  [ ]  [ Notify friends ]  [ Print ]  [ Close ]

 
 
0 in all [view all]  Related Comments

 
Hot Graphics
Hot News
Hot Topics
 
 
Powered by Global FoodMate