Graincorp acquires United Malt Holdings
Wheat trader Graincorp has announced the $757 million acquisition of global company United Malt Holdings (UMH). The acquisition will enable the Australian company to become an international business, with operations in Canada, the UK and USA as well as domestically.
Graincorp is largely known for its wheat export and marketing business and the acquisition will add a 1 million-ton barley business to its books. The purchase will be funded via an entitlement offer to existing shareholders before new shares are offered.
The acquisition is a strategic move to counter the fluctuations in grain harvests and seasonal variations. “Following two years of drought driven losses, it is pleasing for the company to return to profitability in this manner,” said GrainCorp managing director Mark Irwin.