USA – COFCO International, Ltd. and GROWMARK Inc. have entered into definitive agreements involving significant U.S. grain assets.
COFCO International will purchase GROWMARK’s minority stake in the Cahokia transloading facility in Cahokia, Illinois, while GROWMARK will acquire COFCO International’s ownership in the Chicago grain warehouse facility, known as the “B-House.”
The Cahokia Facility is a pivotal grain and byproduct transloading terminal strategically situated on the Mississippi River within the year-round St. Louis Harbor.
The facility provides access to all seven of North America’s Class I railroads and features over seven miles of private on-site rail track, capable of handling up to four-unit trains (110 cars) simultaneously.
This high-speed rail and truck-to-barge loading facility is crucial for the efficient movement of grain and byproducts.
In contrast, the B-House facility, located on the Calumet River near downtown Chicago, has a substantial storage capacity of 11.5 million bushels and offers unparalleled flexibility for grain movement via rail, truck, barge, and laker vessels.
This facility plays a vital role in facilitating imports and exports through the Great Lakes.
“We plan to continue investing in our U.S. business, and we intend to pursue additional opportunities focused on supporting our U.S. Gulf and Pacific Northwest export strategy,” Zhijun (Jerry) Shi, Chief Operating Officer G&O for COFCO International in North America, commented on the transaction.
Matt Lurkins, Vice President of Grain and Strategic Relationships for GROWMARK, highlighted the benefits for farmers, saying, “GROWMARK is a farmer-owned cooperative. That means the farmers growing the grain that gets traded through B-House will now get to participate in the returns generated from this link of the supply chain. We are excited to add B-House to our portfolio of cooperatively owned grain assets.”
These simultaneous transactions reflect both companies’ commitment to strengthening their positions in the U.S. grain market. For COFCO International, acquiring full control of the Cahokia Facility will enhance its logistical capabilities and support its export strategies.
Meanwhile, GROWMARK’s acquisition of the B-House facility will allow it to provide more direct benefits to its farmer-members, integrating them further into the supply chain and enabling them to share in the financial returns.
The transactions are expected to be finalized following the necessary regulatory approvals and customary closing conditions.
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