|Robert Day, president and chief executive officer at Ceres|
“The addition of Nature’s Organic Grist broadens Ceres’ portfolio of products and services, and reinforces our vision to be the most trusted and valued partner to quality-conscious customers,” said Robert Day, president and chief executive officer at Ceres. “This acquisition is complementary to our existing business activities and will be immediately accretive to Ceres. Nature’s Organic Grist brings a skill-set needed to be successful in the organic space, while Ceres’ infrastructure, farmer relationships and end-user customer-base can be utilized to lower logistical costs and increase access on both ends of the organic supply chain.”
The acquisition will be funded from existing working capital. Cash cost of the acquisition in fiscal 2018-19 is approximately $2.8 million, with potential for further payments to Nature’s Organic Grist’s former owner based on the future performance of the business. Nature’s Organic Grist will continue to operate under its current name as a subsidiary of Ceres.
This acquisition is the latest in Ceres’ move to continuing expanding. In May, Ceres Global Ag and Consolidated Grain and Barge Co. (CGB) agreed to jointly own and operate a new company called Savage Riverport, LLC.
Previously owned and operated by Riverland Ag (a fully-owned and integrated subsidiary of Ceres), the Savage terminal now will be owned and operated as a joint venture between the two companies and will buy, store and ship wheat, corn, soybeans, oats, rye and other products.Ceres is headquartered in Minneapolis, Minnesota, U.S. Its wholly-owned facilities throughout North America have an aggregate grain and oilseed storage capacity of approximately 34.4 million bushels.