The deal, subject to regulatory approvals and other customary closing conditions, is expected to close in early 2023.
Upon completion of the transaction, Cargill will add OGC to its North American agricultural supply chain business.
The move will modernise and increase the company's capacity across its North American oilseeds network to support the growing demand for oilseeds driven by food, feed and renewable fuel markets, Cargill noted.
Leonardo Aguiar, president of Cargill’s North American agricultural supply chain, stated, "Our two companies have tremendous operational histories, similar heritages as grain merchants, and values, including an unwavering commitment to prioritising people ― making this a tremendous fit.
"Additionally, this is a significant milestone in Cargill’s journey to create a connected and modernised grain experience for our customers."
Owensboro Grain Company
OGC is a fifth-generation family-owned soybean processing facility and refinery located in Owensboro, Kentucky.
Founded in 1906 as a small grain merchant, OGC currently operates a fully integrated soy processing facility, producing soy products, including protein meal and hull pellets for animal feeds, crude and de-gummed oil, lecithin, various blends of refined vegetable oil for human consumption, biodiesel, glycerin and industrial waxes.
Helen Cornell, president and CEO of Owensboro Grain Company, stated, "Cargill has the ability to capitalise on growth opportunities in the industry, such as renewable energy. The acquisition will ensure that Owensboro Grain Company, its employees, farmers, customers and the community are best positioned for the future.
"We are excited to transfer ownership to another multi-generational family-held enterprise with global access to markets and capabilities to ensure the future growth of our business. Cargill has the global resources necessary to support Owensboro Grain Company's growth goals and operations."