MAUMEE, OHIO — In a move that will increase the company’s storage capacity by nearly 30%, The Andersons, Inc. has signed an agreement to purchase a majority of the grain and agronomy assets of Green Plains Grain Company, L.L.C., a subsidiary of Green Plains Renewable Energy, Inc. The transaction includes the purchase of 12 grain storage facilities and is expected to close in the fourth quarter.
“This will be the largest acquisition in our company’s 65 year history, and will increase the storage capacity of our Grain Group by nearly 30%,” said Mike Anderson, chief executive officer. “This acquisition aligns with our geographic growth strategy for both our grain and plant nutrient businesses, and we expect it will be accretive on a full-year basis in 2013.”
The agreement involves the purchase of seven facilities in Iowa and five in Tennessee, with a combined grain storage capacity of about 32 million bus, 12,000 tons of nutrient storage and more than 130 employees and working capital.
“This acquisition is consistent with our strategy of expanding our footprint into high grain production geographies where we can leverage our core capabilities to serve more customers in diverse trade areas,” said Denny Addis, president of The Andersons’ Grain Group. “It enables us to push further to the west and south, increasing our presence in Iowa and entering Tennessee. An additional benefit is our ability to now offer agronomy services in a combined manner with our grain business.”According to the2012 Grain & Milling Annualpublished by Sosland Publishing Co., The Andersons operates 27 grain storage facilities with total capacity of 115,520,000 bus. The company has 13 terminal facilities, 9 country elevators, 3 processing plants and 2 port facilities.