Agrocorp acquired Associated Grain, a leading Australian processor of pulses and seeds. Agrocorp plans to expand its processing business in the pulses industry and to consolidate its leadership.
Singapore-based agricultural commodities trading and processing firm Agrocorp International announced its acquisition of Associated Grain, a leading Australian processor of pulses and seeds, for S$26.6 million. In the press release that Agrocorp published, Agrocorp stated that the acquisition is part of Agrocorp’s strategy to expand its processing business and access more of the value chain, as well as to consolidate its leadership in the pulses industry. Associated Grain is known to operate four plants with a cumulative storage capacity of 25,000 tons, and an ability to handle 200,000 tons a year. Its product portfolio includes pulses such as chickpeas, mung beans and faba beans, as well as cereals like wheat and barley. Agrocorp will provide to allow it to procure grains directly from Associated Grains’ farmers, and supply them with seeds ahead of the planting session. It is expected that acquisition adds $118 million in revenue of company. As part of the acquisition, Agrocorp has committed to new infrastructure with an additional 2,400 tonnes of silo storage capacity being built. It has also pledged to undertake research and development (R&D) projects to develop new seed varieties in collaboration with a research institute in Queensland.