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Marubeni 20120530 gavilon_eng


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Marubeni 20120530 gavilon_eng

  1. 1. Acquisition of Gavilon May 30, 2012
  2. 2. Agenda 1. Gavilon Overview 2. Gavilon Business Segments 3. Grains 4. Fertilizer 5. Energy2 Acquisition of Gavilon – May 30, 2012
  3. 3. 1. Gavilon Overview • Headquarters: 11 ConAgra Drive, Omaha, Nebraska, USA • Overview: US-based, leading grains, fertilizer and energy trader with more than 300 storage facilities and offices worldwide; Gavilon became the third largest grain operation behind ADM and Cargill following the 2011 DeBruce Companies acquisition • Established: Private investors formed Gavilon and acquired ConAgra Trade Group in June 2008 • Net Assets: US$ 1,909 million • Sales: US$ 17,852 million • Equity Holders: Ospraie Fund and Ospraie Special Opportunities Fund, General Atlantic, Soros Fund Management and Gavilon Management • Employees: 1,9433 Acquisition of Gavilon – May 30, 2012
  4. 4. 2. Gavilon Business Segments Grains 2011 Sales US$ 14,555 Employees 1,326 Risk Control / Risk Management Fertilizer 2011 Sales US$ 2,907 Transportation / Logistics Employees 311 2011 Sales US$ 17,852 Employees 1,943 Energy 2011 Sales US$ 390 Employees 124 • Grains: Operates a strategic distribution network with more than 140 grain facilities across North America and the third largest grains storage network in the US with distribution marketing offices in Australia, Ukraine and Brazil • Fertilizer: Operates one of the largest US wholesale fertilizer networks with 74 storage and handling facilities across the US, Mexico, South America and Africa with storage capacity of 1.2 million tons and handling volume of 6 million tons • Energy: Operates a trading business mainly dealing in crude oil, natural gas and fuels which is operated through a vast logistics network that includes 8 million barrels of crude oil storage capacity, 10 billion cubic feet of natural gas storage capacity and 500,000 barrels of refined products storage capacity4 Acquisition of Gavilon – May 30, 2012
  5. 5. 3. Grains Strengths in Grains • Third largest storage network (8.3 million tons) and over 140 grain facilities in the US • Major US handler of grain ingredients (wheat products, corn products, DDGS, etc.) • Operates in key global markets, such as Australia, Ukraine and Brazil Significance of the Transaction • Expansion of the platform in the US, which is the largest grain market in the world • Creating a major grains player, with combined handling volume of more than 55 million tons • Continued ability to maintain and provide a steady source of grains Wichita Facility • 852,000 metric tons storage • 363 bins stretching one-half mile • shuttle loader capability5 Acquisition of Gavilon – May 30, 2012
  6. 6. 3. Grains – Significance of US Market in Global Grains Trade Grains Demand Grains Production (million tons) (million tons) US Rest of World Top 5 exporters after US (Argentina, US Australia, Brazil, Canada, Russia)2,250 1,2002,000 2011 1,0001,750 20111,500 8001,250 6001,000 750 400 500 200 250 0 0Note: Includes volumes for corn, wheat, soybeanSource: Food and Agricultural Policy Research Institute6 Acquisition of Gavilon – May 30, 2012
  7. 7. 3. Grains – US Grain Majors (Storage Capacity) 12.0 10.4 10.0 9.5 9.0 8.3 8.1 8.0 6.3 6.0 4.0 2.0 0.0 ADM Marbeni + Cargill Gavilon Bunge CHS Gavilon Source: Grain & Milling Annual 20117 Acquisition of Gavilon – May 30, 2012
  8. 8. 3. Grains – Growth Strategy Post-Acquisition • Establish a competitive global grain network with Gavilon’s North American operations and Marubeni’s global distribution channels Global Grains Trade Supply Chain Origination and Transportation Marketing and Producers Storage Export Sites Customers Supply and Logistics Distribution Purchase grain and Merits of scale Store and blend Profit from two Distribute to ingredients from when shipping product to meet export terminals; growing developing farmers, co-ops, freight (railroad, customer quality Columbia Grain – world markets and processors and barge, etc.) requirements and 100% owned by Japan; capture other merchants earn elevation, Marubeni; Kalama sales margins earning origination blending, storage Export Company – margin and carrying charges 45% owned by Gavilon Strength in global distribution, especially in China Strength in origination and supply8 Acquisition of Gavilon – May 30, 2012
  9. 9. 4. Fertilizer Strengths in Fertilizer • One of the largest fertilizer wholesale networks in the US • Continuous relationships with more than 1,800 global leading suppliers and customers • Leveraging its own market intelligence through grains, ingredients and fertilizer markets Significance of the Transaction • Building up the fertilizer value chain through collaboration with Helena • Expansion of the trading and distribution business, and acceleration of fertilizer product manufacturing, including fertilizer raw materials Jamestown Facility • 38,100 metric tons of dry fertilizer storage • 20,000 short tons of liquid storage complete in June • Share site with grain facility9 Acquisition of Gavilon – May 30, 2012
  10. 10. 4. Fertilizer – Growth Strategy Post-Acquisition • Synergy with Helena – significant North American fertilizer market supplier • Expansion of fertilizer distribution – international trading / distribution, inter-relationship between grain and fertilizer demand growth Gavilon (Fertilizer) HELENA Fertilizer Volume US (4 million tons), Outside US (2 million tons) US (2.8 million tons) 2011 Sales US$ 2.9 billion US$ 3.7 billionUS Fertilizer Market Supplier Wholesaler Retailer End User 20%(8 mil MT) Domestic Large retailer owning Farmer / Co-ops (North import and domestic America) Trader owning river terminals 30 mil MT import terminals Trader / Whole saler owning import 60%(24mil MT) Import and domestic river 10 mil MT terminals Small – Mid retailer 15%(6mil MT) not owning terminals Total 40 mil MT 5%(2 mil MT) 10 Acquisition of Gavilon – May 30, 2012
  11. 11. 5. Energy Strengths in Energy • Vast logistics network, that includes 8 million barrels of crude oil storage capacity, 10 billion cubic feet of natural gas capacity, and 500,000 barrels of refined products storage capacity • Sophisticated risk management capability grounded in sound governance structure Significance of the Energy Business Acquisition and Growth Strategy • Expansion of our crude oil, refined products, and natural gas trading , marketing and distribution business in North America • Growth via increased storage assets and further development of stable fee and margin businesses from existing assets Cushing Facility • 4.14 million barrels of storage capacity • 14,000 barrels per hour of pipeline throughput capacity • Access to NYMEX delivery point11 Acquisition of Gavilon – May 30, 2012