AGT Food and Ingredients of Regina has entered into an agreement to sell all its shares in MobilGrain to a Chicago-based global alternative asset management firm.
Announced Wednesday, the sale to GCM Grosvenor includes MobilGrain’s shortline rail and bulk grain handling infrastructure. However, as part of the deal, AGT has signed a 20-year agreement with MobilGrain to continue to utilize its grain and transportation infrastructure for its global origination and supply chain programs.
Financial terms were not disclosed, but the sale will return “significant” capital to AGT, which presently generates over $3 billion in revenue annually, according to an AGT news release. The deal is expected to close later this year or in early 2025.
“AGT is thrilled to enter this partnership with GCM Grosvenor, a key infrastructure investor who wants to hold the infrastructure for the long term, improve and grow it to build on the work that MobilGrain and AGT have done over the past two decades operating these assets,” Murad Al-Katib, President and CEO of AGT, said in a release.