Ceres Global Ag Expands into Organic Grain
Ceres Global Ag has expanded into the organic grain category through its subsidiary Riverland Ag Corp which has acquired organic and ancient grain, milled flour, and feed supplier Nature’s Organic Grist. Under the terms of the deal, Nature’s Organic Grist will retain its business name, and will function as a subsidiary of Ceres.
Driving the acquisition is Ceres’ strategy to align its business with the demands of “quality-conscious consumers”, according to company president and CEO Robert Day.
Initial cost for the acquisition will be $2.8 million in the 2018-19 fiscal year, which will be funded from existing working capital. Additionally, there is the potential for future payments to Nature’s Organic Grist’s former owner based on performance.
This acquisition will add Nature’s Organic to Ceres’ portfolio of wholly-owned facilities across North America, that combined have a grain and oilseed storage capacity of about 34.4 million bushels. Expectations are that the deal will be immediately accretive to Ceres and will prove to be complementary to its existing business activities.