Gavilon Grain and Union Elevator Sign Purchase Agreement

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Union Elevator Shareholders Agree to Sell Grain Operations

  

Omaha, Neb. and Lind, Wash. (March 24, 2011) Gavilon Grain, LLC and Union Elevator & Warehouse Company today announced 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 yesterday, 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.

 

About Gavilon Grain, LLC

Gavilon Grain, LLC is a subsidiary of The Gavilon Group, LLC. Headquartered in Omaha, Nebraska, The Gavilon Group, LLC is a leading commodity management firm, connecting producers and consumers of feed, food and fuel through its global supply chain network. Gavilon’s history dates back to 1874, when Peavey Company built its first grain facility. In 1982, Peavey was acquired by ConAgra Foods, Inc. and later became part of ConAgra Trade Group. In 2008, a group of investors, led by Ospraie Management, LLC, formed Gavilon and acquired ConAgra Trade Group, enabling the newly formed, privately held company to focus on growing its commodity business. In 2010, Gavilon acquired the DeBruce Companies, significantly expanding the company’s agricultural operations. Today, Gavilon leverages its strategic partnerships and more than 300 facilities and regional offices worldwide to link agricultural and energy supply with increasing global demand. The company provides origination, storage and handling, transportation and logistics, marketing and distribution, and risk management services to tens of thousands of customers each year and employs 1,800 people around the world. For more information, please visit www.gavilon.com.

 

About Union Elevator & Warehouse Company

Union Elevator & Warehouse Company is a leading regional country grain operation that has served customers in eastern Washington for more than 100 years. The company handles, stores, and merchandises grain commodities; operates a seed processing plant; and provides trucking services to area producers. The majority of the company’s stock is held by its employees. With nearly 100 investors, Union Elevator is the largest privately owned grain operation in the Pacific Northwest. For more information, please visit www.unionelevator.com