A Japanese trading firm, Marubeni Corp., has purchased Omaha-based Gavilon Group, LLC. Gavilon, a grain handling company, has 31 locations in Nebraska.
In all, Gavilon has nearly 150 grain loading sites and 40 feed and grain storage sites in the United States. It has fertilizer operations in this country, plus facilities around the globe.
According to Reuters, Marubeni paid $3.6 billion for Gavilon and also assumed $2 billion in Gavilon debt. Under the arrangement, Gavilon will become a wholly owned subsidiary of Marubeni.
In a Gavilon press release, Greg Heckman, president and CEO, said, "As part of a larger trading organization, Gavilon will be well-positioned to more efficiently connect supply with growing global demand."
With the purchase, Marubeni will increase substantially its grain trading business in the U.S. and abroad. "With this acquisition, Marubeni will have gained over 140 grain loading sites and access to a vast grains storage and distribution network in the United States, as well as sites in key production regions outside of the United States, such as Brazil, Australia and Ukraine, which we will combine and utilize with our existing assets," according to Marubeni officials.
Marubeni says it handles 25 million tons of grains, but with Gavilon's handling volume of 30 million tons, it "will achieve a combined handling volume of more than 55 million tons, which will further our competitiveness in the global grains trade."Gavilon, in addition to its grain handling and fertilizer businesses, also has an energy trading business.