More than a year after the initial purchase agreement of Gavilon, Vitera changed the name of Gavilon’s facility in Creston on Monday. According to Vitera, the Viterra brand will begin to be implemented across its business in the United States and Mexico.
Viterra, which means “life from the earth”, is an agriculture network connecting producers and consumers to sustainable, traceable and quality-controlled agricultural products. Omaha, Nebraska, will continue to be the headquarters for Viterra’s U.S. and Mexico business.
“Today’s launch of the Viterra brand across our operations in the U.S. and Mexico sets the stage for the continued growth and investment across our network,” said Rayner Freyberg, CEO of Viterra U.S. and Mexico. “We will continue to look for ways to strengthen our business and create additional opportunities for our employees, producers, and customers. We are proud to implement the Viterra brand throughout our network. This change will not impact who our producers, customers, and vendors work with within our company, nor change the high level of service they have come to expect from us.”
The Viterra name and logo will begin to be used across the U.S. and Mexico and this process will continue until all aspects of the Gavilon brand have been updated.
In January of 2022 Viterra announce a stock purchase agreement with Marubeni America Corporation, a wholly-owned subsidiary of Marubeni Corporation, to acquire the grain and ingredients business of Gavilon Agriculture Investment, Inc.
The agreed purchase price for the acquisition of Gavilon was $1.125 billion, plus working capital, and is subject to certain customary purchase price adjustments.
Gavilon, based in Omaha, originates, stores and distributes grains, oilseeds, as well as feed and food ingredients, to food manufacturers, livestock producers, poultry processors, soybean processors and ethanol producers worldwide.
Gavilon’s leading asset network is located in key growing areas across the United States, with access to major railroads, rivers and ports. It also has international operations in Mexico, South America, Europe and Asia, along with an indirect minority ownership interest in two port terminals located in Kalama, Washington and Portland, Oregon.
“The addition of Gavilon supports our long-term strategy of significantly increasing our presence in the United States, one of the major producing and exporting regions, which will further strengthen our global network,” said David Mattiske, Chief Executive Officer of Viterra Limited. “The combination of the Gavilon and Viterra origination businesses will enable us to provide more value and flexibility to our customers. We will be able to rapidly enhance our sustainable supply chains, provide higher levels of quality control and reliability, while creating exciting opportunities for our customers and employees. We look forward to welcoming the employees of Gavilon to the Viterra team, and further strengthening the successful business and commercial relationships Gavilon has built with producers and consumers.”
Peter Mouthaan, Chief Financial Officer at Viterra Limited, said, “This transaction demonstrates the continued support of our shareholders to execute on opportunities that deliver significant growth for our business, while maintaining a robust balance sheet.”
Funding for the agreed purchase price and a portion of the assumed working capital has been secured through the signing of a committed acquisition financing facility. Funding for the remainder of the working capital will be financed by using proceeds from other committed financing facilities and cash on hand, including existing available undrawn committed credit lines amounting to approximately US $3.6 billion as of Dec. 31, 2021. The transaction closed late last year.