US – Richardson International Limited, Canada’s largest agribusiness and a global leader in agriculture and food processing, is diversifying into wheat processing through the acquisition of Italgrani USA Inc., the single largest durum miller in North America.
According to a statement from Richardson, the acquisition is part of its long-term strategic goals of diversification, geographic expansion, and an increased presence in food processing.
The deal includes a milling facility in St. Louis, Missouri, specializing in semolina and durum flour products, storage and crop inputs facilities situated at Tolley, Powers Lake, and Benedict in North Dakota, and a commodity trading office in Minneapolis, Minnesota.
The company expects the significant scale of the processing capability of the Italgrani plant, combined with origination opportunities and crop inputs retail facilities will further enhance the services we will be able to offer to our producer customers, both in Canada and the U.S.
Richardson’s foray into wheat processing could not have been more timely as the wheat flour market has experienced tremendous growth in the past on the back of the development in food processing technologies and an increase in the demand for fast & convenience foods.
According to Research and Markets, the upsurge in demand for bakery products, snacks, noodles, and pasta, among others, has also bolstered the wheat flour market growth.
Following successful completion, Richardson will retain the current workforce and looks forward to welcoming these employees to the Richardson group of companies.
“The Italgrani team is pleased to be joining the Richardson International family of companies and looks forward to working together to further grow and expand the Italgrani USA business footprint,” said James Meyer, President, Italgrani USA.
“Our two companies are well aligned in that we are both focused on customer service, innovative solutions, and being good stewards of resources.”
The purchase agreement will close immediately following receipt of all requisite regulatory approvals. Richardson will own 100 percent of the shares of Italgrani USA.
Rabobank is serving as financial advisor and Koley Jessen as legal counsel to Richardson International on the transaction.
Rothschild & Co. is serving as financial advisor, Gattai, Minoli, Partners as legal counsel – together with Akerman for U.S. law aspects – and Marchese Zanardi & Partners as tax advisor to Italgrani and its shareholders.
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