GrainCorp has branched out into the feed supplement and animal nutrition sector after entering into a binding share sale agreement to acquire 100 per cent of the shares on issue in XF Australia for $35 million. GrainCorp and XF Australia announced the sale agreement, which includes its Performance Feeds and NSA brands, on November 15. Subject to certain regulatory and commercial conditions precedent, completion of the sale was expected to occur on or before January 31, 2024. GrainCorp managing director and chief executive Robert Spurway said the transaction was in line with its strategy of “disciplined growth in targeted business areas” to expand its offering to customers. XFA founder and major shareholder Dr R. Hollis Klett said “after 38 years of success” in the feed supplement and animal nutrition consulting sector, “the decision to sell XFA was not made lightly”. “Careful consideration was taken to choose a buyer that aligned with our culture and could support our company through its next phase of growth,” Dr Klett said. “We wanted to align ourselves with a company that provided a high level of service and quality products to its customers. “We also wanted to ensure that our customers are cared for and secure into the future, with the buyer having the resources to manage agricultural cycles and take an innovative approach to their business and product offering.” Dr Klett said his teams were committed to working with GrainCorp to ensure a smooth transition and ongoing success. “Seeing my vision grow and prosper has been my greatest achievement and pleasure, and I wish all involved every success and a prosperous future,” he said. The XFA management teams will remain in the business under GrainCorp’s new ownership following completion. Mr Spurway said he was delighted to welcome XFA to the GrainCorp group and looked forward to expanding its animal nutrition offering to its customers. “Performance Feeds and NSA are highly respected in the feed supplement sector and are run by an experienced team, who will enhance GrainCorp’s capabilities in animal nutrition,” Mr Spurway said. GrainCorp is an agribusiness and processing company with a market capitalisation of $1.7 billion, that accumulates, produces, and trades agricultural commodities including grains, pulses, oilseeds, edible oils, animal feeds and human nutrition products domestically and internationally. XFA was founded in 1993 and operates three manufacturing sites in Queensland and one in Victoria through its two brands.