SYDNEY, AUSTRALIA: GrainCorp Limited (ASX: GNC) has entered into a binding share sale agreement to acquire 100% of the shares on issue in XF Australia Pty Ltd (XFA) for a purchase price of A$35m million.

XF Australia (XFA) is a provider of feed supplement products and nutritional consulting services to Australia’s feedlot and grazing sector.

XFA was founded in 1993 and trades under two main brands: Performance Feeds – a manufacturer of a range of liquid and loose lick nutrition supplements for feedlots and range cattle to help boost production and performance, and optimise the all-round health of sheep, beef and dairy cattle; and Nutrition Service Associates (NSA) – a feedlot performance and nutritional consulting business providing both independent advice and trace mineral premix production services.

XFA operates three manufacturing sites in Queensland and one manufacturing site in Victoria and has a team of highly skilled animal nutritionists with postgraduate qualifications.

GrainCorp Managing Director and CEO, Robert Spurway, said: “We are delighted to welcome XFA to the GrainCorp group and look forward to expanding our Animal Nutrition offering to our customers. Performance Feeds and NSA are highly respected in the feed supplement sector and are run by an experienced team, who will enhance GrainCorp’s capabilities in Animal Nutrition. The Transaction is in line with our strategy of disciplined growth in targeted business areas to expand our offering to customers.”

XFA generated $7.6m of EBITDA for the 12 months to 30 June 2023.

Completion of the Transaction is subject to the satisfaction of certain conditions precedent, including the entry into new commercial and lease agreements with certain of XFA’s contractual and commercial counterparties, and the Australian Competition and Consumer Commission (ACCC) not notifying GrainCorp that it intends to intervene in respect of the transaction before completion.

GrainCorp will fund the purchase price payable on completion of the transaction from its existing cash reserves.