CALGARY, ALTA. — Viterra Inc. has signed an agreement to acquire Kansas City-based 21st Century Grain Processing for $90.5 million. 21st Century Grain operates an oat mill in South Sioux City, Neb., and a wheat mill near Amarillo, Texas.

“We are pleased to have reached this agreement with 21st Century Grain Processing, which has established an excellent reputation in the industry for providing healthy, high quality, grain-based food ingredients,” said Karl Gerrand, senior vice-president of processing for Viterra. “Its operational focus aligns well with our processing segment, creating opportunities to better serve our customers by optimizing our logistics and realizing production efficiencies. Further, it will position our company to better compete in this industry and meet the continued growth in demand for healthy food products in North America.”

Lynn Rundle, c.e.o. of 21st Century Grain Processing, said the transaction is expected to position the company well as it continues its growth over the long term.

The South Sioux City oat mill has storage capacity of 4 million bus and the capability to process up to 295 tonnes of oat products per day. In addition to oats, the facility manufactures coated grains and clusters used in foods such as granola bars, ready-to-eat breakfast cereals and snack foods.

The Amarillo wheat milling facility has storage capacity of 3 million bus and may process up to 225 tonnes of flour per day. The mill also produces whole wheat, bakery and tortilla flour.

“An important benefit of this combination will be our ability to deepen our relationships with customers and more effectively deliver innovative customized ingredients to them,” Mr. Gerrand said. “We look forward to working with 21st Century Grain Processing to further those relationships with customers they serve in North America and throughout the world.”

The acquisition of 21st Century Grain continues what has been an active 2010 for Viterra. In May, the company acquired Dakota Growers Pasta Co., strengthening its position in the North American dry pasta market. Earlier, the company said it would invest $20 million to $25 million as part of a joint venture with Guangxi Beibu Gulf International Port Group Co. Ltd. to build a canola crushing facility in the province of Guangxi, South China, at the port of Fangchenggang.