Malt Monopoly: One Malt to Bind Them All in the Land of Brewing
One malt to guide them all, one malt to source them, one malt to combine them all, and in the global market merge them; in the land of brewing where the golden grains lie
United Malt, an Australian company, has concurred to a buyout proposal from Malteries Soufflet, a subsidiary of the French corporation InVivo. This deal potentially paves the way for the creation of the largest malt producer worldwide.
United Malt, currently ranking as the fourth largest commercial malt producer globally with facilities in Australia, Canada, the US and UK, has agreed to a takeover by Malteries Soufflet. The latter already manages 28 malt houses in various regions including Europe, Latin America, Asia and Africa.
The acquisition aligns with InVivo’s strategy to rise as the premier malt producer worldwide within the next five years.
InVivo, having previously acquired Soufflet, agreed in January to take over the Belgian malthouse, Castle Malting.
This takeover of United Malt will expedite the growth of InVivo’s malt business, enabling it to double in size three years earlier than initially planned, according to InVivo’s CEO Thierry Blandinieres.
Upon approval by Australia’s Foreign Investment Review Board and United Malt’s shareholders, the AU$1.5 billion deal will facilitate InVivo’s ascension as the leading global producer and supplier of bulk malt to brewers, craft brewers, distillers, and food companies.
Graham Bradley, the chairman of United Malt, stated that the company’s board is of the view that the AU$1.5 billion offer aptly represents the value of its asset portfolio and the expected growth in its near-term earnings.
United Malt’s shares experienced a leap of 9.1% to AU$4.8 subsequent to the announcement of the takeover. The stock exhibited the most significant increase in percentage value among the stocks listed on the benchmark index.
United Malt procures its malt from some of the world’s top barley-growing regions, which include the Scottish Highlands, Idaho’s Sawtooth Mountains, and the Goondiwindi in New South Wales, Australia.
Earlier this year, brewers were reported to be hoarding malt to avoid being affected by the escalating prices, which have surged by 40% to 50%. Malt is one of several key ingredients essential to beer production that has witnessed a sharp increase in price, causing many craft brewers to shut down their businesses this year.