USA – Green Plains, the parent company to feedlot firm Green Plains Cattle Co., has signed a definitive agreement to acquire Kansas based Bartlett Cattle Co’s cattle feeding operations in Sublette, Kansa and those in Tulia, Texas for US$16 million.
The transaction also will involve a working capital of US$109 million.
According to World Grain, the transaction includes feed yard operations, which consist of approximately 2,100 acres of land, grain storage and water sources, with a combined capacity of approximately 97,000 head and brings Green Plain Cattle’s feeding operations to 355,000 head.
“Our success in cattle feeding over the last four years gives us confidence to continue growing in this area and adding the Bartlett cattle-feeding operations fits seamlessly into our protein growth strategy,” said Todd Becker, president and chief executive officer of Green Plains.
“Expanding our feeding operations by 38% strengthens our ability to further supply our internal demand for the distiller’s grains and corn oil we produce.
This acquisition will be immediately accretive to our earnings in the third quarter and enhances our ability to deliver more stable and consistent earnings to our shareholders.”
Green Plains acquired two cattle-feeding operations from Cargill for US$36.7 million, excluding working capital.
The transaction included feed yards adding capacity of 155,000 head to the company’s operations.
In the second quarter of 2018, the company sustained a loss of US$1 million, compared with a loss of US$16.4 million in the same period in 2017.
Revenues were US$986.8 million for the second quarter of 2018, up from US$886.3 million a year ago.
In a statement on the financial results, Becker said: “Our second quarter had a solid financial performance from our non-ethanol businesses, led by a record quarter in our food and ingredients segment driven by performance in our cattle feeding operations and strong grain handling margins in our ag and energy services segment.”