Gavilon Grain, LLC and Galesburg Order Buyers, Inc. dba GrainStore Sign Definitive Agreement

« Back to news

 

Gavilon Will Acquire Eight Grain Elevators in West-Central Illinois


Omaha, Neb. and Galesburg, Ill. (May 11, 2010) – Gavilon Grain, LLC and Galesburg Order Buyers, Inc., doing business as GrainStore Elevators, today announced the companies have signed a definitive agreement under which Gavilon will acquire the grain merchandising company’s west-central Illinois assets. The acquisition includes the purchase of eight grain elevators and one receiving station, with combined licensed storage capacity of approximately 14.6 million bushels.


“GrainStore has maintained top quality facilities that are strategically located in one of the highest yielding corn and soybean production areas in the United States,” said Greg Konsor, vice president and general manager of Gavilon Grain. “GrainStore’s physical footprint, sound business practices and strong financial performance make the company’s grain elevators an attractive addition to our network of 74 facilities across the United States. We look forward to working with GrainStore’s talented management team and employees, and serving this geographic market.”


“We are excited to become part of the Gavilon team,” said Marty Anderson, president of GrainStore. “This transaction will provide the company access to a multitude of resources that will allow us to enhance our services for customers. In addition, this partnership will enable GrainStore to pursue opportunities in Illinois and further expand the business.”


Gavilon is committed to ensuring a seamless transition for GrainStore customers and employees, as well as the continued success of the GrainStore business. All GrainStore forward purchase and sales contracts will be assumed by Gavilon. In addition, Gavilon intends to retain all of GrainStore’s current employees. The transaction is expected to be completed by the end of this month.


About Gavilon Grain, LLC
Gavilon Grain, LLC is a subsidiary of The Gavilon Group, LLC. Gavilon operates the fifth largest grain merchandising operation and is a leading feed ingredient platform in the United States. The company’s grain operations include sourcing, storage, handling and distribution of corn, wheat, soybeans and specialty grains to food manufacturers, livestock producers, poultry processors, soybean processors and ethanol producers. Gavilon utilizes its logistical expertise in truck, rail, container, barge and vessel shipments to serve a global customer base.


The Gavilon Group, LLC provides essential services in the physical distribution, trading, merchandising and risk management of raw materials and value-added products moving through the global supply chain of grain, feed ingredients, fertilizers and energy products. For more information, please visit www.gavilon.com.


About Galesburg Order Buyers, Inc.
Galesburg Order Buyers, Inc., doing business as GrainStore Elevators, is a leading grain merchandising company with the largest storage capacity in a four-county area in west-central Illinois. The company operates eight elevators and one receiving station that are close in proximity to numerous export facilities on the Mississippi and Illinois Rivers. GrainStore also manages multiple domestic grain processors, making the company a highly valuable business partner to both growers and major purchasers of corn and soybeans. For more information, please visit www.grainstore.net.