Cleary Gottlieb represented Axereal in its acquisition and financing of the global malt business of Cargill.
On October 31, 2019, Axereal completed the acquisition of Cargill’s malt business on behalf of its malt subsidiary, Boortmalt.
On December 20, 2018, Axereal and Cargill had entered into an agreement under which Cargill committed to sell its malt business to Boortmalt. The transaction was subject to Cargill’s employee representatives consultation, the clearances of the German and Brazilian competition authorities, and the approval of the Australian Foreign Investment Review Board.
The financing of the transaction was raised through the issuance of equity and quasi-equity instruments, the establishment of senior debt facilities and subordinated tranches, and available cash.
Cargill global malt business includes 16 facilities across four continents, representing more than 600 people, and serves the brewing, food, and beverage industries by originating and transforming malting barley into malt. This acquisition strengthens Axereal’s position globally and makes Boortmalt the world’s leading player in the production of malt.
Axereal is one of France’s foremost cereals cooperative groups, specializing in growing and processing cereals for the brewing, baking, and livestock industries. Boortmalt is the Axereal malt subsidiary and now operates 27 malting plants across the world.