Backer of area grain project up for sale; Liberty Grain not expected to be affected

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NEW YORK — Gavilon Group has drawn interest from suitors including Bunge and Glencore International as the closely held grain handler weighs a sale that could fetch as much as $5 billion, said people familiar with the matter.

Gavilon is providing a portion of the financing for the $32 million Liberty Grain shuttle-loading facility under construction between Kimball and White Lake. Chuck Jepson, of Liberty Grain LLC, said he knew the firm could potentially be sold before work on the Liberty Grain project began.

“It wouldn’t have any effect at all,” he said regarding any impact the acquisition of Gavilon by another company could have on the Liberty Grain project.

Gavilon is asking for first-round bids in early March, said sources, who declined to be identified as the process is private. The company also may pursue an initial public offering, an option its owners discussed with banks, they said. Gavilon’s top investor is Ospraie Management, the hedge-fund firm founded by Dwight Anderson.

Wilmar International, Japanese trader Mitsui and Canadian grain handler Viterra also are exploring offers, said two of the people. The successful bidder for Gavilon, whose roots go back more than a century, would gain one of the world’s largest fertilizer distribution networks, as well as the thirdbiggest U.S. grain-merchandising operation, based on the company’s website.

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