BOULDER, COLORADO, US — Viserion Grain, LLC, a newly formed subsidiary of Viserion International Holdco, LLC backed by Pinnacle Asset Management, LP, has entered into an agreement to acquire 11 grain elevator facilities from New Orleans, Louisiana, US-based Zen-Noh Grain Corp. Financial terms of the transaction were not disclosed.
The 11 elevators being acquired are located across five US states along the Mississippi and Ohio rivers and have a total storage capacity of approximately 25 million bushels. The grain elevators are located in Huffman, Arkansas, US; Osceola, Arkansas (Riverside and Landside), US; Helena, Arkansas, US; McGregor, Iowa, US; Savanna, Illinois, US; Shawneetown, Illinois, US; Lake Providence, Louisiana, US; Lettsworth, Louisiana, US; Caruthersville, Missouri, US; and Cottonwood Point, Missouri, US.
“These facilities located across major inland US waterways are integral to expanding our agricultural trading platform and grain handling capabilities,” said Aaron Wiegand, chief executive officer of Viserion International. “We believe that the addition of these assets will accelerate our growth and provide a strong foundation to market grain and oilseeds directly to domestic customers and exporters.”
Jason M. Kellman, managing partner and chief investment officer of Pinnacle, added, “These facilities fit squarely into our growing physical commodities portfolio and expand our ability to participate in the grain and oilseeds supply chain directly. Moreover, we will leverage the strategic assets to complement Viserion’s domestic trading operations. We look forward to working closely with Aaron and his dedicated team of industry experts as we further strengthen our business.”
Zen-Noh Grain Corp., which is a subsidiary of the National Federation of Agricultural Cooperative Associations of Japan, in April 2020 reached an agreement to acquire 35 US interior elevators from Bunge North America, Inc., a subsidiary of St. Louis, Missouri, US-based Bunge Ltd. The 11 elevators in the deal with Viserion are being divested in conjunction with Zen-Noh’s proposed acquisition of the Bunge grain elevators.
Both the Viserion/Zen-Noh and Bunge/Zen-Noh transactions are expected to close later this spring.
Viserion International Holdco, LLC is a global agricultural merchant based in Boulder. Viserion Grain, LLC, a subsidiary of Viserion International, is expected to manage a portfolio of strategic grain storage and handling facilities.
Founded in 2003, Pinnacle Asset Management, LP is a private, New York, New York, US-based alternative asset management firm focused on the global commodities markets with approximately $3.2 billion under management. Over the past five years, Pinnacle-managed entities have made several strategic investments to bolster the private equity firm’s physical commodities trading and merchanting business, including owning Five Rivers Cattle Feeding, the world’s largest cattle feeding operation and Six One Commodities, a global energy merchant. Pinnacle also is the majority shareholder of Concord Resources Holdings Ltd., a global metals merchant.