Viterra closes on 21st Century Grain acquisition
August 18, 2010
by Eric Schroeder
CALGARY, ALTA. — Viterra Inc. on Aug. 17 closed its $90.5 million acquisition of 21st Century Grain Processing, a Kansas City-based processor of oats, wheat, and custom-coated grains that operates two plants in the Central U.S., an oat mill in South Sioux City, Neb., a facility that mills wheat near Dawn, Texas, and a corporate office in Kansas City. The transaction was first announced in late May.
“This is an ideal acquisition for Viterra that complements our existing industrial oat business, and further diversifies our product offering with the addition of 21st Century’s value-added whole grain ingredients,” said Karl Gerrand, senior vice-president of processing at Viterra. “We are pleased to welcome 21st Century’s employees to the Viterra team and look forward to working with them in delivering quality products and services to our customers.”
Viterra said the acquisition builds on its mission to leverage its expertise and existing core capabilities to supply its value-added processing operations. Under the combination, 21st Century’s processing facilities in the United States are expected to benefit from Viterra’s existing oat milling operations and grain origination network in Canada.
The acquisition of 21st Century Grain continues what has been an active 2010 for Viterra. In May, the company acquired Dakota Growers Pasta Co., strengthening its position in the North American dry pasta market. Earlier, the company said it would invest $20 million to $25 million as part of a joint venture with Guangxi Beibu Gulf International Port Group Co. Ltd. to build a canola crushing facility in the province of Guangxi, South China, at the port of Fangchenggang.