The terms of the deal were not disclosed, but it has received backing from the boards of directors of both Cargill and OGC. The acquisition is subject to regulatory approvals and other customary closing conditions. It is expected to close in early 2023.
OGC is a fifth-generation family-owned soybean processing facility and refinery located in Owensboro, Kentucky. It was founded in 1906 as a small grain merchant and today operates a fully integrated soy processing facility. It crushes more than 100,000 bushels of soybeans daily, necessitating the procurement of soybeans from multiple states, according to the company website.
'A great fit'
Leonardo Aguiar, president of Cargill’s North American agricultural supply chain, said: “Our two companies have tremendous operational histories, similar heritages as grain merchants, and values, including an unwavering commitment to prioritizing people ― making this a tremendous fit. Additionally, this is a significant milestone in Cargill’s journey to create a connected and modernized grain experience for our customers.”
And a spokesperson for Cargill told FeedNavigator the company is a great fit both operationally and culturally. “Owensboro Grain has a diverse portfolio including protein meal and hull pellets; oil and lecithin for food and feed; biodiesel; and bio-based products including glycerin, wax, and grain. Much like Cargill, Owensboro Grain is a family-owned company with a values-based culture where people come first, and there is an expectation to do the right thing, including prioritizing safety and continuous improvement.”
Helen Cornell, president and CEO of the soy processor, said Cargill has the ability to capitalize on growing opportunities in the industry, such as renewable energy. “The acquisition will ensure that Owensboro Grain Company, its employees, farmers, customers and the community are best positioned for the future.”
Increasing demand for oilseeds
Cargill said the acquisiton would help it support the increasing demand for oilseeds, driven by food, feed and renewable fuel markets.
Last year, the company announced a series of projects including significant improvements to its soybean crush facility in Sidney, Ohio, and construction of a new canola processing facility in Regina, Saskatchewan, Canada. Meanwhile, in May this year, the agribusiness giant reported that it was building a new soybean crushing facility in Pemiscot County, in Southeast Missouri, which will be operational in 2026.
