Cargill has announced a deal to sell its global malting business to Boortmalt, a subsidiary of the French co-operative Axéréal.
Axéréal, which operates in 13 countries and employs 3,200 people, is a producer and processor of value-added cereal grain products for the baking, brewing and livestock industries.
The agreement, which is subject to regulatory approvals, would involve 15 Cargill-owned malting facilities on four continents, including Prairie Malt based in Biggar, Sask.
Financial terms of the deal were not disclosed, but the deal is expected to close in the second half of 2019, said Cargill spokesperson April Nelson.
Other than Prairie Malt in Saskatchewan, the only other North American facility included in the deal is based in Wisconsin, Nelson said.
No immediate changes are planned at any of the facilities involved in the deal.
Cargill employs about 500 people at its global malting facilities.
“For the time being, day-to-day operations are continuing as is,” Nelson said Dec. 20.
“So Cargill will continue to operate all of its facilities and all of our employees will continue to be employed by us.”
When the deal closes, all assets will be taken over by Boortmalt.
“It’s been a successful business for us for quite some time, but really we saw the opportunity for that business and for our employees to grow really residing in selling to (Boortmalt), whose sole focus is the malt business,” Nelson said.