GRAINCORP announced it would sell its Australian Bulk Liquid Terminals business to ANZ Terminals for $350m.
Australian Bulk Liquid Terminals operates eight liquid terminal sites across Australia, with a combined storage capacity of about 211,00 cubic metres, and it handles bulk liquid fats and oils; fuels; and chemicals for a range of customers. As GrainCorp Oils is one of these customers, it has entered into a long-term storage agreement with ANZ Terminals.
GrainCorp managing director and CEO Mark Palmquist said since acquiring the assets in 2012, the Australian Bulk Liquid Terminals business has been increasingly serving other sectors in addition to the edible oils commodities that are closely aligned with GranCorp’s core business.
“Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders,” he said.
GrainCorp Oils group general manager Sam Tainsh said ANZ Termainls is an established and respected bulk liquid terminals operator.
“We will work with ANZ Terminals to ensure a smooth transition for our customers and our people and through the long-term storage agreement we will have the access required for our trading and liquid feeds businesses.
GrainCorp bought the Australian Bulk Liquid Terminals in 2012 as part of its acquisition of Gardner Smith. GrainCorp said it would retain ownership of its New Zealand bulk liquid terminals which are more integrated into its supply chain, but it is reviewing options for the business as part of the ongoing portfolio review.
ANZ Terminals has 12 operating assets that have a total storage capacity of about 426,000 cubic metres.