Top Canadian grain handler Vi terra said May 27 it will buy 21st Century Grain Processing in a $90.5-million cash deal that brings it an oat mill and wheat mill in the United States.
The oat mill in South Sioux City, Nebraska, can store four million bushels and process up to 295 tonnes of commercial oat products a day. The mill also makes coated grains and clusters used in granola bars and breakfast cereals.
The wheat mill near Amarillo, Texas, can store three million bushels and process up to 225 tonnes of flour per day. It also makes products such as whole-wheat, bakery and tortilla flour.
“(The acquisition) will position our company to better compete in this industry and meet the continued growth in demand for healthy food products in North America,” said Karl Gerrand, Viterra’s senior vice-president of processing.
Viterra, which started life as a Canadian farmers’ co-operative, last year dramatically expanded its reach by acquiring Australia’s ABB Grain. It said this month that it was looking to buy more processing plants after acquiring Dakota Growers Pasta Co., a durum mill.