Viterra Inc. has entered into an agreement with the newly formed Hi-Pro Feeds LP to divest its North American livestock feed operations, according to reports, including six feed mills and one pre-mix manufacturing facility in Canada, and six feed mills and one commodity blending site in the U.S.
Hi-Pro is owned by the existing management team and Birch Hill Equity Partners. "The processing segment is important to Viterra's vertically integrated business model as it allows us to generate additional margin on the core commodities we handle and provides diversification to our earnings," said Mayo Schmidt, president and CEO of Viterra. "The company will continue to look for opportunities to grow its processing portfolio in industries where it can achieve scale and influence and this divestment will allow us to focus our capital on areas of greatest strategic impact.
Pending completion of customary closing conditions, including regulatory approvals, the transaction is expected to close during Viterra's second fiscal quarter.