GrainCorp and Zen-Noh Grain Corp. have agreed to sell their Canadian grain supply chain joint venture, GrainsConnect to Parrish & Heimbecker (P&H).
The binding agreement, announced earlier this week, values GrainsConnect at C$150 million on a cash-free, debt-free basis, with an additional payment to be made for net working capital at closing. The transaction remains subject to customary regulatory and closing conditions and is expected to be completed in the first half of 2026.
GrainsConnect is a 50-50 joint venture between Australia-based GrainCorp and Japan’s Zen-Noh, one of the world’s largest agricultural cooperatives.
The company’s major grain handling assets here in Canada include four high-capacity inland terminals in Alberta and Saskatchewan, and a shared interest in the Fraser Grain Terminal at the Port of Vancouver.
The decision to divest follows a strategic review initiated after a period of “challenging financial performance.” After reviewing several strategic alternatives and receiving multiple third-party proposals, the partners concluded that a sale would deliver the greatest value.
GrainCorp managing director and CEO Robert Spurway said the sale reflects the company’s ongoing focus on portfolio optimization and disciplined capital allocation.
“Divestment of GrainsConnect allows GrainCorp to focus on alternative value-creating opportunities that are in the best interests of our shareholders,” Spurway said.
The transaction does not include GrainCorp’s Canadian marketing offices in Winnipeg, which will continue to operate and provide market intelligence to the broader GrainCorp organization.
Winnipeg-based P&H now operates more than 30 grain elevators across Western Canada.
