The Andersons to acquire O'Malley Grain
April 15, 2010
by Eric Schroeder
MAUMEE, OHIO — The Andersons, Inc. has signed a letter of intent to purchase two grain cleaning and storage facilities from O’Malley Grain, Inc. The purchase includes O’Malley’s two facilities in Fairmont, Neb., and Mansfield, Ill.
Founded in 1981, O’Malley supplies food-grade corn to the snack food and tortilla industries. According to O’Malley, the Mansfield facility was built in 2000 and the Fairmont facility in 1998. Each facility is capable of handling more than 3,000,000 bus per year.
“This purchase is a natural extension of The Andersons’ procurement and storage grain business,” said Hal Reed, president of The Andersons Grain & Ethanol Group. “For decades we have been supplying corn, wheat, soybeans and oats to a number of end use domestic and foreign markets and now we are expanding our service of providing specialty grain to food producers.”
Mike Anderson, chairman and chief executive officer of The Andersons, said the transaction represented an opportunity for the company to continue its strategy of investing in logical business, operational and geographic adjacencies.
“Essentially, the mechanisms of the business are the same as what we’ve been doing since our beginning,” he said. “We will extend the same value system of providing exceptional customer service and enjoying lasting relationships to this new arena.”
The Andersons, Inc. has 20 grain storage facilities with total storage capacity of 101 million bus.