OMAHA, NEBRASKA and LIND, WASHINGTON, U.S. — Gavilon Grain, LLC and Union Elevator & Warehouse Company announced on March 24 that the companies have signed a purchase agreement. Under the terms of the agreement, Gavilon will acquire Union Elevator’s eastern Washington assets, including 16 grain elevators, at 12 locations, with licensed storage capacity of 8.4 million bushels.

Union Elevator shareholders voted on March 23, approving the sale of the company’s assets to Gavilon. The transaction is expected to be completed during the second quarter of 2011.

“We are very pleased to be expanding our asset base with a company that has such a rich history of serving producers in eastern Washington,” said Greg Konsor, vice-president and general manager of Gavilon Grain. “The addition of Union Elevator’s grain facilities and origination capabilities position us well to support the growing Pacific Northwest export wheat market and serve the Columbian Basin feed grain market.”

“We are looking forward to becoming part of Gavilon’s network of grain operations,” said Randy Roth, general manager of Union Elevator. “This transaction will enable Union Elevator to continue growing in eastern Washington, backed by the financial strength of a global commodity management firm. Our partnership with Gavilon will also allow us to further expand our customer offerings as we leverage the company’s scale and scope and drive greater efficiencies through our operations.”

Gavilon is committed to maintaining the outstanding service and competitive pricing that Union Elevator offers its customers and will retain all of Union Elevator’s current employees. All Union Elevator forward purchase and sales contracts will be assumed by Gavilon.