GrainCorp Acquisition

Grain marketer's acquisition reaches into new markets.
 

Distilling and refining malt maker's purchase price allocation in accordance with IFRS 3 and Australian tax obligations

With operations throughout New South Wales, Queensland and Victoria, one of Australia's largest agricultural supply chain and logistics companies, GrainCorp, effectively went global by acquiring UK-based United Malt Holdings (UMH) for AU$757 million.

Extracting international value
As the world's fourth largest commercial malt manufacturer and with operations in the UK, US, Canada and Australia, UMH supplies malt for use in the production of beer and whisky to a number of the world's leading brewers and distillers including Fosters. Operating 14 malt houses the company produces approximately 1 million metric tonnes of malt per annum.

GrainCorp engaged American Appraisal to provide a comprehensive independent valuation of all UMH's acquired tangible and intangible assets for purchase price allocation purposes in accordance with IFRS 3 requirements and Australian tax consolidation obligations.

With UMH operating on three continents, American Appraisal Sydney worked closely with its global network in New York, Toronto and London to undertake the entire valuation. Amercian Appraisal's valuation encompassed the appraisal of land, buildings, land improvements, malt dedicated machinery and equipment, along with intangible assets such as long term contracts.

Local worth
The valuation achieved auditor approval and with our deep experience in the local market, we were able to adapt our valuation to meet NSW State Revenue Office requirements, saving GrainCorp considerable stamp duty costs.

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