TORONTO, ONTARIO, CANADA — Ceres Global Ag. Corp. announced on March 20 that its subsidiary Riverland Ag Corp. has entered into an agreement to see its Manitowoc, Wisconsin, U.S., grain storage facility to Briess Malt and Ingredients Co., Chilton, Wisconsin, U.S.
The transaction is expected to close before the end of Ceres’ next quarter.
“This is a key milestone in our plan to transform Riverland into an active grain trading and merchandising company while optimizing Riverland’s grain elevator capacity through selective asset sales,” said Michael Detlefsen, president and chief executive officer (CEO) of Ceres. “It is also a critical step in reallocating capital to find the Northgate project.”
Gross proceeds from the sale of the Manitowoc facility will be $6.2 million. Under the terms of the sale, Ceres, through Riverland, will leave back from Briess 1 million bushels of storage capacity for a three-year term.
“Riverland’s strategic partnership with Briess Industries is further enhanced with the sale of Manitowoc and Riverland will continue to serve its Wisconsin and Illinois grain customers from leased space at the facility,” said Craig Reiners, president and CEO of Riverland.