Glencore Xstrata to sell Australian malt producer Joe White Maltings to Cargill
05 Aug 2013
Commodities and mining giant Glencore Xstrata Plc, today said it would sell Australian malt producer Joe White Maltings to US crop giant Cargill Inc.
Joe White Maltings is the largest malt producer in Australia, with seven plants, including its specialty malting facility in Ballarat, which produces more than 550,000 tonnes per annum.
Malt produced by Joe White Maltings is sold under its name sake brand and supplies brewers in Singapore, Japan, Thailand, Vietnam, Korea, Indonesia, Cambodia, Papua New Guinea, Philippines, Malaysia and Australia.
Glencore, which did not disclose the financial terms of the deal, said it expected to close the transaction by the end of Q4 subject to regulatory approvals.
Joe White Maltings came into Glencore's portfolio as part of its $6.2-billion acquisition of Canadian grain handler Viterra in 2012. (See: Glencore to acquire Canadian grain handler Viterra for $6.2 bn)
Cargill, which has malting operations in Europe and the Americas but none in Australia, said that the acquisition was a good strategic fit, completing Cargill's global footprint in all key barley production areas.
"We look forward to bringing our malt industry expertise and additional capital to Joe White Maltings to continue to grow the business," said, Philippa Purser, Cargill Australia managing director.
Founded during the Gold Rush at Ballarat in the 1850s Joe White Maltings has a long and distinguished history.
The company was acquired by AusBulk in 2002 and merged with Adelaide Malting Company. ABB Grain became the parent company of Joe White Maltings following a merger with AusBulk in 2004. ABB Grain was purchased in 2009 by Viterra.