Marubeni to Buy Grains Company Gavilon for About $3.6B

Marubeni said this acquisition will help it take advantage of surging global demand for grain and fertilizer as developing nations grow. Once the deal is complete, Marubeni said it expects to be able to handle 55 million tons of grain annually.

30 May 2012 --- Japan's Marubeni Corp. has announced plans to buy Nebraska-based grains company Gavilon Holdings LLC for about $3.6 billion in a move to capitalize on rising demand in developing nations for grain and fertilizer.

The privately-held Gavilon owns and runs a grains, fertilizer and energy commodities distribution and storage network.

Marubeni buys and distributes various industrial and consumer goods and grains.

Marubeni said that the acquisition will give it access to more than 140 grain loading sites, a large grain storage and distribution network in the U.S. and sites in regions including Brazil, Australia and the Ukraine. It will also give Marubeni the ability to tap into Omaha-based Gavilon's fertilizer terminals and storage and blending facilities in 59 U.S. locations.

Marubeni said this acquisition will help it take advantage of surging global demand for grain and fertilizer as developing nations grow. Once the deal is complete, Marubeni said it expects to be able to handle 55 million tons of grain annually.

"We are pleased that our strategic review process has resulted in an agreement to become a wholly owned subsidiary of Marubeni,” said Greg Heckman, president and chief executive officer of Gavilon. “As part of a larger trading organization, Gavilon will be well-positioned to more efficiently connect supply with growing global demand.
 
“Marubeni and Gavilon share a similar focus on customers, employees, growth and risk management, and we anticipate minimal changes to our organization and operations,” he added. “We are excited by the opportunities this transaction will create and look forward to what we will achieve together."
 
Morgan Stanley acted as sole financial advisor and Jones Day acted as legal advisor to Gavilon in connection with the transaction.