Louis Dreyfus Company Asia to acquire Emerald Grain

One of Australia’s leading grain storage and handling companies will be sold for the third time since 2014, in a deal with a global food giant.

Leading Australian grain handling business Emerald Grain is to be sold for the third time in eight years, with global food giant Louis Dreyfus Company the pending buyer.

The company’s Asian arm, Louis Dreyfus Company Asia has entered into a sale and purchase agreement with Emerald Grain owners, Roc Partners’ entity Longriver Farms, for an undisclosed sum to be settled on October 31.

The pending deal is subject to regulatory approvals and customary closing conditions.

Emerald Grain chief executive David Johnson said the pending acquisition would not affect the company’s day-to-day operations in the short-medium term, but could open the door for future expansion.

“This agreement is an opportunity for all Australian growers in our network to access LDC’s extensive global reach,” he said.

“LDC’s leadership position in the global agriculture industry reflects its commitment to growers and customers alike, and we look forward to continuing our journey as part of the LDC family.”

Emerald Grains was launched by Mick Cattanach along with Alan Winney and Mike Chaseling in 2004, and subsequently bought by Japanese commodity conglomerate Sumitomo Corporation in 2014.

Louis Dreyfus Company Asia is set to acquire Emerald Grains Roc Partners’ entity Longriver Farms.

Boutique Australian investment firm Roc Partners purchased Emerald Grain for an undisclosed sum in December 2020.

Emerald Grain has seven grain storage and receival sites across NSW and Victoria, with a combined storage capacity of about a million metric tons.

They also have a grain export terminal at the Port of Melbourne and marketing offices in Geraldton, Western Australia and Moama, NSW.

Emerald Grains also has ties to 10,000 Australian farming families offering grain products, including wheat, barley and canola, for export across Australia.

LDC’s chief executive Michael Gelchie said the pending acquisition was part of the global company’s Australian strategy.

“This development is aligned with LDC’s commitment to the Australian market, where LDC has been active for over a century, originating, processing and exporting grains, oilseeds and cotton, and with our strategic plans to further reinforce our leading position in core agri-commodities merchandising activities,” he said.

Louis Dreyfus have also been a major player in the Australian cotton gin market, acquiring sites at Wee Waa and Moree in NSW and Emerald and Dalby in Queensland.

In 2016 the Midfield Group and Louis Dreyfus Company Dairy Asia, a subsidiary of Louis Dreyfus Company Asia, also entered into a joint venture to build and run a dairy processing plant in Penola, South Australia.