A Numurkah oilseed company will be changing hands under a deal being organised by GrainCorp.September 20, 2012 4:04am
GrainCorp has launched a $159
It plans to merge Integro with crusher Gardner Smith — which owns Numurkah’s Riverland Oilseeds — to create what would become the second-largest oilseed player in Australia.
Chief executive Alison Watkins said GrainCorp could have funded the entire deal with debt but opted to raise capital to maintain financial flexibility.
The move fits with GrainCorp’s strategic focus on its three core grains: wheat, barley and canola. The new division, GrainCorp Oils, will be headed by Sam Tainsh and will have an annual crushing capacity of 300
‘‘The opportunity to combine Gardner Smith and Integro into a larger business is a clear and logical fit with our business model,’’ Ms Watkins said.
‘‘Together they build on GrainCorp’s existing supply chain management and grain marketing expertise, and expand our downstream processing operations into canola and other edible oils.
‘‘GrainCorp Oils will provide us with immediate scale in the edible oils sector in Australia and New Zealand.
‘‘Both Gardner Smith and Integro offer us leading positions along the edible oils supply chain,’’ she said.
‘‘While both are very good businesses in their own right, it is the combination of the two into a cohesive whole that allows us to unlock additional value for GrainCorp’s shareholders, and connects the grain growers who use our network more closely with edible oils customers.’’
Commonwealth Bank of Australia analyst Jordan Rogers said the new company would create a ‘‘genuine competitor to Cargill Inc’’ in the Australian oilseeds sector, although GrainCorp Oils will still be around half the size of the number one player.
Goodman chief executive Chris Delaney said the company had also signed a long-term supply partnership with GrainCorp to ensure an efficient supply of raw materials for its retail fats and oils brands, which included Meadow Lea, Praise and Paul Newman salad dressings.
Neighbourhood Watch Week will start with a sizzle — a sausage sizzle to be precise — at Sevens Creek Dve in Kialla.
Victoria State Emergency Service (SES) and other emergency services are preparing for the next round of wild weather in the north-east.
It was clear blue skies last Tuesday for the official launch of the Gargarro (pronounced Ga-gar-ro) Botanic Gardens in Girgarre.
SNAKES will be coming out of hiding as the weather warms up.
KATH Bubb has been recognised for 50 years of service with the Ballendella Red Cross.
IT EXPERTISE in Kyabram has received recognition after Advance Computing won a Microsoft Australia Partner Award in the excellence in regional area customer category.
Seymour A and B-grade in season decider
Extensive rainfall in the Southern Riverina is having a negative impact on farming.
McIvor Creek – in and around Heathcote – has gone over its banks with all our recent rain, flooding streets and causing closures and detours.
Yarroweyah's Katie Anderson will be heading to Wisconsin in the United States after winning the Dairy Youth Travel Scholarship.
After a 30-year career as an accountant in Deniliquin, Peter Skipworth officially retires today.
Tuesday, August 16
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