SYDNEY, AUSTRALIA — GrainCorp has entered into an agreement to sell its Australian Bulk Liquid Terminals business to ANZ Terminals Pty. Ltd. for approximately A$350 million.
The Australian Bulk Liquid Terminals business was acquired by GrainCorp in 2012 as part of the acquisition of Gardner Smith. It operates eight liquid terminal sites across Australia, with a combined storage capacity of approximately 211,000 m3. The sites specialize in the storage and handling of bulk liquid fats and oils, fuels and chemicals for a range of customers, including GrainCorp Oils. As part of the transaction, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals.
“Since we acquired the assets in 2012, the Australian Bulk Liquid Terminals business mix has evolved substantially and is increasingly serving other sectors, in addition to the edible oils commodities that are more closely aligned with GrainCorp’s core business,” said Mark Palmquist GrainCorp managing director and chief executive officer. “Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders.”
The transaction is subject to a number of conditions, including GrainCorp not entering into a change of control transaction or material alternative transaction before May 10, no material adverse change, regulatory approvals from the Foreign Investment Review Board and Australian Competition and Consumer Commission, lessors’ consents and finalization of agreements required for the transition of the business.
“ANZ Terminals is an established and respected bulk liquid terminals operator,” said Sam Tainsh, GrainCorp Oils group general manager. “We will work with ANZ Terminals to ensure a smooth transition for our customers and our people and through the long-term storage agreement we will have the access required for our trading and liquid feeds businesses.”
GrainCorp noted the sale of the Australian Bulk Liquid Terminals is an outcome of its ongoing portfolio review.
The company has retained ownership of its New Zealand bulk liquid terminals, which are more fully integrated into its supply chain. However, it is independently reviewing options for this business as part of the ongoing portfolio review.
Blackpeak Capital acted as financial adviser and Gilbert + Tobin acted as legal advisers on the transaction.