Sunday 26th May, 2019

GrainCorp sells business to ANZ Terminals for $350M

GrainCorp shed at the Port of Portland. Photo: David Sexton
GrainCorp shed at the Port of Portland. Photo: David Sexton

GrainCorp has agreed to sell its Australian Bulk Liquid Terminals business to ANZ Terminals for a total enterprise value of around $350 million.

Australian Bulk Liquid Terminals was acquired by GrainCorp in 2012 as part of its acquisition of Gardner Smith. It operated eight liquid terminal sites around the country and has a combined storage capacity of around 211,000 cubic metres. The sites specialise in the storage and handling of bulk liquid fats and oils, fuels and chemicals.

As part of the deal, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals.

The transaction is subject to a number of conditions, including GrainCorp not entering into a change of control transaction or material alternative transaction before 10 May 2019, no material adverse change, regulatory approvals from the Foreign Investment Review Board and the Australian Competition and Consumer Commission, lessors’s consents and finalisation of agreements required for the transition of the business.

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GrainCorp Managing Director and CEO Mark Palmquist said the Bulk Liquids Terminals business mix has evolved substantially and is increasingly serving other sectors.

“Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders.”

GrainCorp Oils Group General Manager Sam Tainsh said ANZ Terminals is an established and respected bulk liquid terminals operator.

“We will work with ANZ Terminals to ensure a smooth transition for our customers and our people and through the long-term storage agreement we will have the access required for our trading and liquid feeds businesses.”

GrainCorp will retain ownership of its New Zealand bulk liquid terminals, which are more integrated into its supply chain.