The sale of Owensboro Grain was a move to become part of a company with a global footprint, according to President and CEO Helen Cornell. While neither company would provide specific details of the transaction, officials said there will be no layoffs and there are no significant operation changes in the works — adding that the values-based atmosphere of a family-owned company will remain.
Cornell said that in 2021, Owensboro Grain began looking at the growth and demand for soy oil being used for renewable diesel and started thinking about what that meant for the company and its future operations.
“As part of that, we realized that in order to be competitive in the market today, in this particular industry, you really need to have a global footprint, because it’s just become a global industry,” Cornell said. “And as a result of that, we decided to look for a strong strategic partner that would be able to take our products into the export market, bring resources and talents to do so, and then also to bring additional products into Owensboro Grain. We went through a pretty detailed process to consider who the right fit would be and made a decision and the shareholders just (on Monday) morning approved the transaction to sell to Cargill.”
Bridget Christenson, Cargill Media Relations Director, said it is “a great fit both operationally and culturally.”
“Owensboro Grain has a diverse portfolio,” she said. “Much like Cargill, Owensboro Grain is a family-owned company with a values-based culture where people come first, and there is an expectation to do the right thing, including prioritizing safety and continuous improvement. The addition of Owensboro Grain sets us up to serve the energy transition while also modernizing the food system. We will soon be able to offer Owensboro Grain Company’s customers access to the global network of domestic and export markets that Cargill serves.”
Cargill, now based out of Minnesota, was founded in 1865 and now has 160,000 employees across 70 countries. According to Forbes, it is the largest privately held corporation in the United States in terms of revenue.
Owensboro Grain was founded in 1906 and is now in the fifth generation of ownership. The business has expanded from primarily processing corn in the early days to operating a fully integrated soy processing facility, producing soy products, including protein meal and hull pellets for animal feeds, crude and degummed oil, lecithin, various blends of refined vegetable oil for human consumption, biodiesel, glycerin and industrial waxes.
Cornell said the acquisition will allow Owensboro Grain to continue to grow.
“I think that ultimately it will mean the business will grow because they’ll be able to bring additional products into Owensboro for further refining,” she said. “I think it’s good news for the community and for our employees.”
She added that there won’t be any layoffs or changes to staffing or compensation packages.
Christenson said Cargill “is committed to retaining what has made Owensboro Grain a success, especially its people. No significant operational changes are currently planned.”
Neither Cornell nor Christenson shared specific details about the transaction. The deal is subject to regulatory approval (a standard procedure for acquisitions) which is expected to come in early 2023.
Cornell said the sale does not affect the intent to purchase the old Daviess County Middle School property.
“We haven’t closed because that school had still been conducting classes and they were still in the process of moving,” she said. “We’re ready to close on that property whenever the school board is ready. The transaction does not affect that purchase.”
Similarly, the acquisition does not affect the application for a federal grant to build a stabilization wall along the riverbank.
“That is something that we are currently pursuing through FEMA that will help both this operation and RWRA, which has a station here at the end of Center Street,” Cornell said. “That particular project benefits the community as well.”
While Cornell said the companies haven’t fully planned the transition, she reiterated that “for the vast majority of our employees, there shouldn’t be a significant change in how we conduct our business.”
“The way I perceive it, this provides our customers access to broader markets because of the Cargill relationship,” she said. “It provides farmers with opportunities to engage with global markets as well. I see it as a win-win for the community, our employees, customers, and our farmers that we serve.”
