Omaha — According to news report, several Asian trading firms, including Mitsui & Co., Marubeni Corp., and Noble Group, are reportedly eyeing Gavilon Group LLC, the Omaha-based commodity trading firm. Gavilon announced in January that it had hired Morgan Stanley to explore “strategic alternatives” to further its growth and create additional value for shareholders (GM Jan. 30, p. 1). None of the companies provided comment, but industry sources noted that the deal would give the Asian firms a significant presence in the U.S. agriculture markets. In addition to its fertilizer and energy enterprises, Gavilon boasts the third largest U.S. grain marketing network behind Archer Daniels Midland (ADM) and Cargill. Both ADM and Cargill have also been mentioned as potential buyers of Gavilon, as have U.S.-based Bunge Ltd. and Swiss-based Glencore International PLC, which just announced its acquisition of Viterra Inc. Gavilon was formed in 2008 when ConAgra Foods Inc. completed the sale of its commodity trading and merchandising operations – including its lucrative fertilizer trading business based in Savannah, Ga. – to an investor group led by Ospraie Special Opportunities Fund (GM June 30, 2008). Gavilon has grown to some 300 facilities and regional offices worldwide, with approximately 2,000 employees engaged in origination, storage and handling, transportation and logistics, marketing and distribution, and risk management services related to agriculture, fertilizer, and energy supply. Gavilon’s largest acquisition came in 2010, when it acquired grain and fertilizer company DeBruce Companies, Kansas City, Mo. (GM Oct. 25, 2010). Gavilon’s largest shareholder is hedge-fund firm Ospraie Management LLC; Orascom Construction Industries of Egypt is another major investor.
Transparency Across the Fertilizer Value-Chain