The transaction is expected to close in the first quarter of 2011 and is subject to completion of due diligence activities and other customary conditions. Terms of the deal were not disclosed.
The partnership between Bunge North America and GROWMARK will allow both companies to tap existing expertise within their organizations while also leveraging Bunge’s grain and oilseed network in Indiana, Ohio, and Kentucky.
“We are excited about the possibilities the partnership with Bunge North America brings to the retailer community served from Cincinnati,” said Jim Spradlin, GROWMARK vice-president, agronomy. “Bunge has strong risk management experience as well as extensive blending and distribution experience in the Americas that — when combined with GROWMARK’s domestic sourcing, sales, and risk management expertise — will provide important synergies to both organizations.”
“Bunge is pleased to be working with GROWMARK to provide value to customers through access to an efficient supply chain,” said Matt Thibodeaux, general manager, Bunge Fertilizer. “Together Bunge and GROWMARK can access ingredients from both international and domestic fertilizer production sources, ensuring the success of the Cincinnati facility.”
Overall, the acquisition represents approximately 91,000 tons of dry and liquid storage.
“The Bunge-GROWMARK partnership supports our corporate objective of pursuing beneficial acquisitions and business alliances,” Rod Wells, GROWMARK director, agronomy sales and operations, added.