GrainCorp has entered into an agreement to sell its Australian bulk liquid terminals to ANZ Terminals for $350 million.
The bulk liquid terminals business in Australia was acquired by GrainCorp in 2012 as part of the acquisition of Gardner Smith. It operates eight liquid terminals sites across the country, with a combined storage capacity of 211.000 m3. The sites specialize in the storage and handling of bulk liquid fats and oils, fuels and chemicals for a range of customers, including GrainCorp Oils. As part of the transaction, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals.
Mark Palmquist, GrainCorp managing director and CEO, says: ‘Since we acquired the assets in 2012, the Australian bulk liquid terminals business mix has evolved substantially and is increasingly serving other sectors, in addition to the edible oils commodities that are more closely aligned with GrainCorp’s core business. 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 has retained ownership of its New Zealand bulk liquid terminals, which are more fully integrated into its supply chain, however, it is independently reviewing options for this business as part of the ongoing portfolio review.