Australian integrated agribusiness, GrainCorp, has completed the sale of GrainsConnect Canada (GCC) to Parrish & Heimbecker (P&H), recognising a loss of $16 million disclosed in its 1H26 results.
The divestment was announced on 17 December after a comprehensive strategic review by joint shareholders, GrainCorp and Zen-Noh Grain Corporation. GrainCorp evaluated a range of factors including recent performance, the global grain and oilseed environment, and structural changes in the Canadian market, impacting the potential for earnings improvement. After considering several alternatives, and having received multiple proposals from third parties, a sale was determined to be the most value accretive option.
At the time, GrainCorp stated the transfer of GCC’s high-quality assets to P&H, an organisation with deep roots in Western Canadian agriculture and a longstanding partnership with GCC and its shareholders, would support stability and ongoing investment for growers, customers and employees.
GCC operates an integrated grain supply chain connecting Western Canadian growers to global markets. The network includes facilities in Alberta and Saskatchewan, each equipped with 134-car rail loops to enable efficient transportation.
The transaction includes GCC’s four high-capacity elevators at Redford, Maymont, Huxley and Vegreville, as well as the company’s 50 per cent interest in Fraser Grain Terminal. It does not include GrainCorp’s Canadian marketing offices in Winnipeg, which will continue to support customers and provide market intelligence to the broader team.
P&H CEO, John Heimbecker, said the company was proud to continue strengthening its footprint in Canadian agriculture.
“This acquisition represents a natural evolution of our long-standing partnership with GrainsConnect Canada,” said Heimbecker.
“We have great respect for the quality of GCC’s facilities and the people who run them, and we look forward to building on that foundation. Being entrusted with the next stage of growth is a responsibility we take seriously, and we’re committed to ensuring growers continue to have competitive, reliable pathways to market.”
The transaction valued GCC at C$150m on a cash-free, debt-free basis, with an additional cash payment for net working capital at closing.
GrainCorp managing director and CEO, Robert Spurway, said the transaction reflected the company’s ongoing commitment to portfolio optimisation and our readiness to rationalise assets where necessary to improve returns.
“Divestment of GCC allows GrainCorp to focus on alternative value-creating opportunities that are in the best interests of our shareholders,” said Spurway.
