Gavilon, LLC and DeBruce Companies Sign Definitive Agreement

The combined company will manage nearly 300 million bushels of grain storage capacity nationwide

OMAHA, Neb. & KANSAS CITY, Mo.--(BUSINESS WIRE)-- Gavilon, LLC and DeBruce Companies today announced that the companies have signed a definitive agreement under which DeBruce will become a wholly owned subsidiary of Gavilon. Upon completion of the transaction, founder and chief executive officer, Paul DeBruce, will continue to serve in his current role and join Gavilon’s board of directors. Larry Kittoe, chief operating officer of DeBruce, will also continue to serve in his current role.

“We are pleased to make this announcement with DeBruce and are enthusiastic about the potential this strategic combination will offer our customers, suppliers and employees,” commented Greg Heckman, president and chief executive officer of Gavilon. “This transaction will result in a company that is extremely well-positioned to meet rapidly growing demand for agricultural resources worldwide, by expanding our North American footprint and nearly doubling access to supply.”

“Our two companies are highly complementary,” said Paul DeBruce. “Each has a variety of operating and service-offering strengths to contribute to the combined entity. Identifying and leveraging best practices will enable us to aggressively compete as one of the leading commodity management firms and the third-largest grain storage network in the U.S., while enhancing the services we provide our customers and suppliers.”

Under the terms of the agreement, Gavilon will purchase the DeBruce Companies, including its grain handling facilities, fertilizer distribution network, feed mills and bean crushing plant. DeBruce Grain Inc. has elevators located in Kansas, Iowa, Nebraska, Texas, Kentucky, Oklahoma, Mississippi, Alabama, Indiana, Wisconsin and Mexico, with combined licensed storage capacity in excess of 140 million bushels. The transaction is expected to close in November 2010, subject to receipt of certain regulatory approvals.

Morgan Stanley acted as financial advisor, and Jones Day acted as legal advisors to Gavilon, LLC in connection with the transaction. BMO Capital Markets acted as financial advisor, and Stinson Morrison Hecker LLP acted as legal counsel to DeBruce Companies in connection with the transaction.

About Gavilon, LLC
Gavilon, LLC is a subsidiary of The Gavilon Group, LLC. Headquartered in Omaha, Nebraska, The Gavilon Group, LLC is a leading commodity management firm, connecting producers and consumers of feed, food and fuel through its global supply chain network. Gavilon’s history dates back to 1874, when Peavey Company built its first grain facility. In 1982, Peavey was acquired by ConAgra Foods, Inc. and later became part of ConAgra Trade Group. In 2008, a group of investors formed Gavilon and acquired ConAgra Trade Group, enabling the newly formed, privately held company to focus on growing its commodity business. Today, Gavilon leverages its strategic partnerships and more than 200 facilities and regional offices worldwide to link agriculture, fertilizer and energy supply with increasing global demand. The company provides origination, storage and handling, transportation and logistics, marketing and distribution, and risk management services to tens of thousands of customers each year and employs more than 1,100 people around the world. For more information, please visit www.gavilon.com.

About DeBruce Companies
Founded in 1978, DeBruce Companies is a leading agricultural firm based out of Kansas City, Missouri. Recognized as one of the premier cross-country truck trading companies in the U.S., DeBruce Grain Inc. operates 23 high-speed grain handling facilities located throughout the Midwest with licensed storage capacity in excess of 140 million bushels. DeBruce Fertilizer and DeBruce Ag Service provide quality fertilizer and crop protection products and services. DeBruce Companies also trade feed ingredients, operate a bean crushing plant and offer freight brokerage services through DeBruce Feed Ingredients Inc., Creston Bean Processing LLC and DeBruce Transportation, respectively. DeBruce is the fourth-largest privately held company in Kansas City and employs more than 550 employees nationwide.

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