Axereal completes acquisition of Cargill’s malt business

French grain cooperative Axereal, on behalf of its malt subsidiary Boortmalt, has completed the acquisition of Cargill’s malt business.

The takeover is expected to bolster Axereal’s standing in the global market, as well as establish Boortmalt as one of the important players in the production of malt.

Axereal Group president Jean-François Loiseau said: “This acquisition meets our two strategic objectives: Firstly, to invest in the downstream of barley to increase the value of our farmer’s production in France and internationally, and especially in growing markets.

“Secondly, we have a long-term vision for our cooperative farmers. This acquisition will help ensure that our trajectory is competitive. We at Axereal are leading the way for the agricultural transition with industrial innovation that provides quality food whilst respecting the environment.”

The deal, first announced in December last year, involved the acquisition of Cargill’s 16 malthouses in nine countries.

The acquired business employed nearly 600 people and has a total production capacity of 1.7 million tonnes.

Cargill Malt business has been serving brewing, food and beverage industries by originating and transforming malting barley into malt.

The deal is expected to increase Boortmalt Group’s production capacity to three million tonnes with 27 malting plants across five continents.

Boortmalt CEO Yvan Schaepman said: “Such a takeover offers us new growth prospects and will enable us to better mitigate risks, particularly those linked to climate change.

“It also allows us to accelerate the development of new malting barley varieties and to create new malts. With this acquisition, we are pursuing our primary ambition: to become the best Maltster in the world.”