General Mills officials recently announced that they are planning to sell their Idaho grain elevator network to a private equity group headquartered in Kansas. 

General Mills has agreed to sell its Newdale, Blackfoot, American Falls, Rockford, Idaho Falls, Pocatello and Schiller Siding facilities to Agspring, said Bridget Christenson, external communications manager for General Mills Global Communications. 

Officials expect to finalize the deal by the end of May. Although they have not released the details of their agreement, officials say the sale won’t negatively impact employees. 

“Our intention is to carry on with the leadership and employees that are responsible for growing the business,” said Brad Clark, president of Agspring. “They will benefit from the transaction with the strengthening in the operations side, as well as being part of a broader network, increasing career opportunities.”

Clark said building infrastructure is important to keeping the grain industry competitive in a global market, and Agspring is helping to fill that need. 

“Agspring  is a new combination of existing resources with a different business approach that brings together the expertise and the capital to meet the changing needs for moving and marketing grains, feedstuffs and food ingredients,” he said. “We bring together players in a variety of commodity markets and related support services to maximize the efficiencies of integrated supply chains. This integration enables Agspring companies to focus on their core competencies while reaping the benefits of a true end-to-end corporate organization.”

While Christenson said General Mills agreed to the sale so it can focus on other opportunities in its supply chain, Agspring officials said the purchase will bring them closer to their goals. 

“This purchase is a strategic addition and core to the business we're building. It's also putting geographic diversity into our platform,” Clark said. 

He continued:

“The business that General Mills has built in partnership with farmers in Idaho has provided a very unique product through identity preservation. It’s this uniqueness of the supply chain that provides an extraordinary product into General Mills cereal plants and for other milling customers, and therefore, to consumers across the US.”

Clark said the acquisition will add to Agspring’s portfolio, but it will also benefit Idaho farmers and grain operation customers. 

“Our intent is to enhance operations and provide efficiencies, such as improved grain delivery for farmers and expanded market access for their grain. In turn, for our customers, we intend to strengthen relationships with farmers to help secure grain supplies.”

Clark said they plan to upgrade and expand the facilities they’re acquiring, where needed, in order to maximize their potential. Agspring also plans to continue General Mills commitment to sustainability and minimal environmental impact.

“This involves looking at ways agriculture can increase yields while reducing its carbon footprint, as well as reducing inputs and greenhouse emissions,” he said.