Agricultural commodity giant Bunge, will sell 35 of its US grain elevators to Zen-Noh Grain Corporation. Portfolio optimization milestone will enable company to reinvest in higher returning areas while strengthening its balance sheet
Bunge announced that it has agreed to sell 35 U.S. interior elevators to Zen-Noh Grain Corporation last week. Company officials said this transaction will help them reduce the costs and focus on more profitable operations. The completion of the sale is subject to customary closing conditions, including regulatory approval.
“This transaction will allow Bunge to operate more efficiently and reinvest in higher returning areas of the company while reducing costs and strengthening our balance sheet,” said Greg Heckman, Bunge’s Chief Executive Officer. “Bunge will continue to be an industry leader in the U.S. grain marketplace through global grain trading and distribution with our export terminals in Destrehan, Louisiana, which we are expanding, and EGT, our joint venture in the Pacific Northwest. We will also continue our strong presence in the soybean processing business and milling operations.”
Through certain supply agreements, Bunge will be able to access a larger and stronger origination and distribution network through Zen-Noh to better serve American farmers and global export customers.
In addition to the export terminals in Destrehan and the EGT joint venture, Bunge will retain ownership in Bunge-SCF Grain, Bunge’s joint venture with SCF, and the Bunge elevators in Indiana that directly support Bunge’s soybean processing plant in Morristown.