CHICAGO, ILLINOIS, U.S. — Archer Daniels Midland Co. and Minneapolis, Minnesota, U.S.-based Cargill have reached an agreement to exchange ownership of certain grain facilities in Indiana and Illinois. Financial terms of the agreement were not disclosed.
Under terms of the agreement, ADM said it will sell to Cargill its grain elevators located in Beardstown, Naples and Keithsburg, Illinois, U.S. Meanwhile, Cargill plans to sell to ADM its grain facilities in Mount Vernon and Evansville, Indiana, U.S.
ADM’s elevator in Beardstown has 701,476 bushels of capacity, while its Naples and Keithsburg elevators have capacity of 286,000 bushels and 340,000 bushels, respectively, according to the 2019 Grain & Milling Annual published by Sosland Publishing Company. All three elevators are located along the Illinois river and are serviced by both truck and barge.
Cargill’s elevator in Evansville has capacity of 1.945 million bushels, while its Mount Vernon facility has capacity of 1.812 million bushels, according to the 2019 Grain & Milling Annual. Both elevators are located along the Ohio river and are serviced by rail, truck and barge.
“We regularly evaluate our portfolio to ensure that our businesses and assets best fit our strategy to maximize long-term returns,” said Jackie Anderson, a spokesperson for ADM. “Cargill’s Mount Vernon and Evansville, Indiana, elevators are a great fit for our origination network, and will allow us to better serve farmer and customer needs in the region.”
Anderson said the companies hope to finalize due diligence and complete the transaction in the coming weeks.