|Gavilon buys Debruce Grain|
|Wednesday, 20 October 2010 21:19|
DeBruce Becomes Gavilon Subsidiary
10/19/10 3:51 PM
OMAHA (DTN) -- Gavilon LLC and DeBruce Grain announced today that DeBruce will become a wholly owned subsidiary of Gavilon, according to a Gavilon press release.
Omaha-based Gavilon's purchase includes DeBruce's grain handling facilities, fertilizer distribution network, feed mills and bean crushing plant. DeBruce currently has elevators in Kansas, Iowa, Nebraska, Texas, Kentucky, Oklahoma, Mississippi, Alabama, Indiana, Wisconsin and Mexico.
The combined storage capacity of DeBruce's facilities is more than 140 million bushels, which raises Gavilon's total storage capacity to nearly 300 million bushels nationwide.
"We are pleased to make this announcement with DeBruce and are enthusiastic about the potential this strategic combination will offer our customers, suppliers and employees," said Greg Heckman, president and chief executive officer of Gavilon. "This transaction will result in a company that is extremely well-positioned to meet rapidly growing demand for agricultural resources worldwide, by expanding our North American footprint and nearly doubling access to supply."
Founder and CEO Paul DeBruce and COO Larry Kittoe will continue to serve in their current roles and join Gavilon's board of directors.
"Our two companies are highly complementary," DeBruce said. "Each has a variety of operating and service-offering strengths to contribute to the combined entity. Identifying and leveraging best practices will enable us to aggressively compete as one of the leading commodity management firms and the third-largest grain storage network in the U.S., while enhancing the services we provide our customers and suppliers."
The transaction is expected to be finalized in November, pending regulatory approval. The terms of the agreement have not been made public.
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