Viterra Inc. has taken another step into grain processing in the United States.It is buying 21st Century Grain Processing, which operates an oat mill in South Sioux City, Nebraska, and a facility that mills wheat near Amarillo, Texas.The deal has a cash price of $90.5 million US, subject to adjustments for debt, cash and working capital levels at the time of closing.This is Viterra’s second major acquisition in the U.S. this year.It recently completed a $240 million deal that added Dakota Growers Pasta to Viterra’s stable.It includes an integrated durum mill and pasta production plant in Carrington, North Dakota, and a pasta production plant in New Hope, Minnesota.Viterra said 21st Century Grain’s processing facilities fit with its existing oat milling operations and grain origination network in Canada.“Its operational focus aligns well with our processing segment, creating opportunities to better serve our customers by optimizing our logistics and realizing production efficiencies,” said Karl Gerrand, Viterra’s senior vice-president for processing.The Nebraska facility has a storage capacity of four million bushels and can process up to 295 tonnes of commercial oat products per day.It also manufactures coated grains and clusters used in foods such as granola bars and ready-to-eat breakfast cereals and snack foods.The flour mill in Texas can store three million bu., process up to 225 tonnes of flour per day and produce products such as whole wheat, bakery and tortilla flour.
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