Canada’s biggest grain company is continuing its expansion into the southern U.S. feed milling industry.
Viterra, whose Unifeed Hi-Pro feed division works under the name Hi-Pro Feeds in the U.S., will invest US$24.2 million to buy the feed milling assets of Gore Bros. and Gore’s Trucking.
The companies, run by the Gore family of Texas for about 60 years, will sell their feed mills at Clovis, N.M., about 175 km northeast of Roswell, and at Comanche, Tex., about 250 km southwest of Dallas. The deal does not include the Gores’ retail outlets.
The Regina grain company said it expects the EBITDA (earnings before income, taxes, depreciation and amortization) of its livestock feed and services division to rise by about 20 per cent through this deal, “after synergies.” Hi-Pro already runs several mills in Texas, New Mexico and Oklahoma.
Viterra said in a press release Monday that it expected to close the deal “later today.”
