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Bartlett to merge with Savage in latest gains deal
Posted on Wednesday, 16 May 2018 14:33
Bartlett and Company, a US-based crop handler, has agreed to combine operations with logistics group Savage Companies in what media reports describe as the latest deal in the agricultural sector.
The two businesses, both of which are held privately, did not specify the financial terms of the transaction, expected to close in August.
Reuters reported on the deal and suggested agricultural companies and farmers are under pressure as crop prices remain low after years of massive harvests of corn, wheat and soybeans.
Such hardships have caused firms to merge, create joint ventures and acquire rivals to lower costs and stay competitive.
Savage is billed as a specialist in supply chain services with 4,000 employees and operations in 250 locations in the US, Canada, Mexico and Saudi Arabia.
The group’s main operations are in rail, truck and marine transportation, working with businesses in the oil refining, power generation, food and agricultural markets.
Combined, the new firm will be renamed Savage Enterprises, with the grain and milling assets continuing to operate under the Bartlett name.
Bartlett Cattle is not included in the deal and the company will instead explore strategic alternatives for these operations.
The transaction comes on the back of seed and chemical groups Dow and DuPont combining in a USD 61.70 billion transaction last year.
In addition, ChemChina and Syngenta and Bayer and Monsanto have also agreed to merge.
Bartlett will include its grain and milling operations in the combination, with the latter billed as the eighth-largest flour milling company in the US, and the former the 20th biggest grain group in the country.
The business competes with the likes of Archer Daniels Midland (ADM) and Cargill and has a capacity of 67.76 million bushels, compared to ADM’s 468.60 million bushels.
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