GrainCorp has reached an agreement to sell its stake in GrainsConnect Canada, signalling its departure from the Canadian bulk grain handling sector. This move follows a period of underperformance for the joint venture. GrainCorp is an Australian agribusiness and food processing company with operations spanning grains, oilseeds, and edible oils. It connects growers with customers through its network of storage and processing sites.
The company and its joint venture partner, Zen-Noh Grain Corporation, have entered into a binding agreement to sell GrainsConnect to Parrish & Heimbecker. The sale remains subject to customary closing conditions. The transaction values GrainsConnect at approximately $A164 million on a cash-free, debt-free basis. An additional working capital payment will be made upon completion of the sale.
Despite the sale, GrainCorp anticipates recording a loss ranging from $5 million to $10 million. The company expects that the sale will be finalised within the first half of 2026. This divestment marks a strategic shift for GrainCorp as it streamlines its international operations and focuses on core markets.
