PENDLETON, OREGON, US — United Grain Corp. and Grain Craft have signed an agreement under which UGC will purchase Grain Craft’s facilities in Pendleton, Oregon, US.

Included in the transaction are a grain elevator, a 19,000-plus-square-foot warehouse and accompanying property.

The property was the site of Grain Craft’s Pendleton flour mill, which was destroyed by fire in August 2022. Grain Craft reiterated plans to replace the lost capacity at a yet-to-be-specified location in the western United States.

Grain Craft said it has spent the last several months clearing the Pendleton property of debris, returning it to a “safe and operational state.” With the cleanup completed, UGC will assume ownership of the property effective immediately.

“The mill had been a fixture of Pendleton for over 100 years, and we look forward to becoming part of its heritage,” said Augusto Bassanini, president and chief executive officer of UGC. “We’re excited to make this investment and expand our services in eastern Oregon broadly and more specifically the Pendleton community. This acquisition falls in line with our core values of reliability, inclusivity, integrity and safety by supporting our mission of serving the needs of our producers and suppliers, fulfilling the evolving needs of our global customers, uniting them and creating success to all.”

He said the acquisition complements UGC’s grain storage and handling network, including other Oregon facilities surrounding Pendleton, in Umatilla County, to the east in Union County and farther east to the Treasure Valley, Idaho, US, area. The company said it operates an integrated supply chain across five states that feeds its main export facility, the Vancouver Export Terminal, on the Columbia River in Vancouver, Washington, US, 200 miles west of Pendleton.

“The Pendleton acquisition will support UGC’s McNary river terminal by acting as a wheat satellite and position the company for growth in existing and new product lines,” UGC said. 

Days after the fire destroyed the Pendelton mill in 2022, Peter T. Frederick, president and CEO of Grain Craft, said the facility was “not only an important component in providing our customers flour, but it is also a significant piece of history for the city of Pendleton and for the milling industry.”

Of the sale to UGC, Frederick said, “We are sad to leave the Pendleton community, however, we feel that we are leaving the footprint of the Pendleton grain and flour legacy in good hands with United Grain Corp.”

Flour customers who had purchased flour milled at Pendleton are being supplied by other milling locations, Grain Craft said. The company added that it plans to replace capacity lost in the blaze in the western United States when a new location is identified.

“We have a significant asset footprint and a great customer base in that area of the country, and we have every intention of investing back into the Pacific Northwest,” Frederick said.