Three Australian firms have helped write the latest chapter of consolidation in the global agribusiness sector, with Graincorp’s A$757m acquisition of United Malt Holdings (UMH). Bakers, Gilbert + Tobin, and Mallesons were involved with the deal, which saw CHAMP Private Equity and its US affiliate Castle Harlan sell one of the world's largest producers of malt, for use in the brewing and distilling industries.

To help fund the acquisition, Graincorp will conduct an A$489m capital raising that is being underwritten by Credit Suisse. G+T will advise Graincorp on the deal while Baker & McKenzie is advising Credit Suisse. The deal also provides further evidence that private equity firms have outgoing options available. “I think it reflects confidence in the equity markets and opportunities for well-managed businesses to be exited,” said Mallesons Sydney partner Michael Barker, who advised CHAMP on the deal. “This was a very well-run business with a very strong management team and a good business model – and that’s why it was a successful exit.”

The move by Graincorp will increase its market capitalisation from A$805m to A$1.4bn – which analysts say could deter potential suitors such as Canadian agribusiness group Viterra, which recently announced the A$1.6bn takeover of ABB Grain.

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