MINNEAPOLIS — Cargill said it has reached an agreement to acquire the grain storage and crop inputs assets of Northstar Grain L.L.C. and associated properties in Decatur, Mich. The transaction is expected to be completed by the end of June, pending routine due diligence. Terms were not disclosed.
“Our ownership of these assets will mean that farmers will gain a competitive market for their grain, as well as an expert crop inputs team from a company that they can rely on,” said Ben Breazeale, leader of the Greater Indiana Farm Service group of Cargill AgHorizons U.S. “We also bring to the table industry-leading risk management products, personalized on-farm grain marketing services and excellent customer service.”
The assets include 4.5 million bus of storage space for corn, soybeans and wheat, and a crop inputs business. The Norfolk Southern railroad serves the site and provides access to markets in the eastern and southeastern U.S.
“We have had a sales presence in southwest Michigan for a number of years,” Mr. Breazeale said. “We have farm marketers and grain marketing advisers who cover the area who can help farmer customers with all aspects of their business. Our crop inputs team will be another valuable resource for producers.”
Cargill said it initially will invest about $3 million in upgrades to the facility to complete the construction of a 500,000-bu storage bin and increase the capability to ship 75-car unit trains.
“We look forward to notably increasing the competitiveness of this facility as a market for our future customers and connecting it to the extensive grain and oilseeds supply chains we serve,” Mr. Breazeale said.