Ceres Global Ag to sell grain storage facility
Ceres Global Ag Corp. announced that its 100% owned subsidiary, Riverland Ag Corp., has entered into an agreement to sell its Savage, Minn., grain storage facility to Consolidated Grain and Barge Co. Consolidated Grain and Barge Co. is a wholly owned subsidiary of CGB Enterprises, Inc., based in Mandeville, La. The transaction is expected to close by the end of June, 2014, and is subject to satisfaction of certain conditions and relevant regulatory approvals.
“This sale is another milestone in our plan to transform Riverland’s operations and fund the construction of the Northgate commodity logistics centre, and it builds on the recent announcement to sell our Manitowoc, Wis., facility,” said Michael Detlefsen, president and CEO of Ceres. “Our focus is to optimize the capacity utilization for the remaining Riverland facilities, continue to develop our active grain trading and merchandising capabilities, and to build a high-throughput grain elevator at Northgate.”
Gross proceeds from the sale of the Savage facility will be $17.8 million. Under the terms of the sale, Ceres, through Riverland, will lease back from CGB 3.5 million bushels of storage capacity at Savage for a six-year term.
“The capacity Riverland has agreed to lease back at Savage will ensure that we retain a presence in the spring wheat and oat delivery markets, which are crucial markets in the region,” said Craig Reiners, President & CEO of Riverland Ag.
“CGB is excited about entering the Savage market and serving new customers in that area. We also plan to expand our Fertilizer, Diversified Services, and other divisions in that market as well,” said Steve Burbrink, Director of Business Development at CGB.
- Argentina seeks to export more food to sanction-hit Russia
- Ag markets proved decidedly mixed again Tuesday
- China's carbon plans: secrecy and oversupply darken outlook
- Russian sanctions threaten both Europe's farmers and policymakers
- Ag markets are decidedly mixed at midsession Tuesday
- California’s drought worst since at least 1895
- Suspected Bt corn rootworm resistance in Pennsylvania
- No El Niño in 2014? Drought-weary California in trouble
- BioNitrogen to build second fertilizer plant in Texas
- Soybean aphid numbers on the rise
- Commentary: Setting the record straight on 'Waters of the U.S.'
- FCC aims to offer high-speed internet to rural America