Viterra announced Wednesday that it has agreed to sell its livestock feed operations in North America.
The deal, now awaiting regulatory approval, is expected to close during Viterra’s second fiscal quarter and includes six feed mills and one pre-mix manufacturing facility in Canada and six feed mills and a commodity blending site in the United States.
On the other end of the arrangement is Hi-Pro Feeds LP, a newly formed entity owned by the existing management team of the livestock feed business, and Birch Hill Equity Partners.
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“The processing segment is important to Viterra’s vertically integrated business model as it allows us to generate additional margin on the core commodities we handle and provides diversification to our earnings,” said Mayo Schmidt, president and CEO of Viterra in a media release. “The company will continue to look for opportunities to grow its processing portfolio in industries where it can achieve scale and influence and this divestment will allow us to focus our capital on areas of greatest strategic impact.”
The release notes that Hi-Pro intends to maintain its existing staff and services.
“I look forward to continuing to provide our customers with the same high level of services and quality products through the existing team of knowledgeable staff…,” said Daren Kennett, chief executive of Hi-Pro in the release.
Birch Hill Equity Partners has $2 billion in capital under management and 20 partner companies.
