Gavilon to buy Union Elevator PNW grain elevators

* Gavilon acquisition allows it to support PNW export mkt

* Elevator purchase equates to 8.4 million bushel capacity

CHICAGO, March 24 (Reuters) – U.S. grain firm Gavilon Grain
said on Thursday it will buy Union Elevator and Warehouse’s 16
grain elevators in the Pacific Northwest, the company’s second
big purchase of U.S. grain facilities in the last six months.

Privately held Union Elevator, where employees own a
significant share of the company, approved the transaction on
Wednesday, with sale expected to be completed during the second
quarter of 2011.

The purchase of 16 elevators at 12 locations in eastern
Washington will expand Gavilon’s grain capacity by 8.4 million

“The addition of Union Elevator’s grain facilities and
origination capabilities position us well to support the
growing Pacific Northwest export wheat market and serve the
Columbian Basin feed grain market,” Greg Konsor, vice president
and general manager of Gavilon Grain, said in a statement.

The Pacific Northwest is the No. 1 wheat export terminal in
the United States.

Omaha, Nebraska-based Gavilon — a commodity trading firm
formed in 2008 when ConAgra Foods (CAG.N: Quote, Profile, Research) sold it to investors
— purchased grain handler DeBruce Companies last year, making
it the third-largest U.S. grain storage network behind Archer
Daniels Midland (ADM.N: Quote, Profile, Research) and Cargill Inc [CARG.UL].

(Reporting by Christine Stebbins; Editing by Lisa Shumaker)

Gavilon to buy Union Elevator PNW grain elevators