GrainCorp has sold it’s Australian Bulk Liquid Terminals for $350 million
BULK grain handler GrainCorp announced this week the sale of its Australian Bulk Liquid Terminals business to ANZ Terminals for about $350 million.
As part of the transaction, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals.
GrainCorp managing director and chief executive Mark Palmquist said the Australian Bulk Liquid Terminals business had “evolved substantially” since the acquisition in 2012, “and is increasingly serving other sectors, in addition to the edible oils commodities that more closely aligned with GrainCorp’s core business”.
“Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, while releasing capital and unlocking significant value for our shareholders,” Mr Palmquist said.
Australian Bulk Liquid Terminals operates eight liquid terminal sites across Australia, specialising in the storage and handling of bulk liquid fats and oils, fuels and chemicals for various customers including GrainCorp Oils.
The multimillion-dollar purchase is subject to various conditions, one of which states GrainCorp must not enter into a change of control transaction or material alternative transaction before May 10 this year.
GrainCorp Oils group general manager Sam Tainish said: “We will work with ANZ Terminals to ensure a smooth transition for our customers and our people and through the long-term storage agreement we will have the access required for our trading and liquid feeds businesses.”
ANZ Terminals is a privately-owned provider of bulk liquid storage terminals across Australia and New Zealand.
GrainCorp will retain ownership of its New Zealand bulk liquid terminals.
However, the company is independently reviewing options for this business as part of the ongoing portfolio review.
Blackpeak Capital acted as financial adviser and Gilbert + Tobin acted as legal advisers on the transaction.