GrainCorp (ASX:GNC) has announced the sale of its Canadian joint venture, GrainsConnect, to Parrish & Heimbecker, subject to customary conditions precedent.
The decision follows a strategic review prompted by challenging financial performance and structural changes in the Canadian grain market.
The transaction values GrainsConnect at CAD$150 million on a cash-free, debt-free basis, with an additional payment for net working capital at closing.
GrainCorp expects a loss on sale of approximately $5–10 million, while its through-the-cycle EBITDA of $320 million remains unaffected.
GrainCorp CEO Robert Spurway said the divestment reflects the company's focus on portfolio optimisation and value creation for shareholders.
The Canadian marketing offices in Winnipeg will remain operational, providing customer support and market intelligence. Completion is anticipated in the first half of 2026.
In a trading update, GrainCorp reported that the 2025–26 East Coast Australia winter harvest is largely complete in Queensland and northern NSW, though weather disruptions continue in southern NSW and Victoria.
Preliminary receival volumes are estimated at 11.0–12.0 million tonnes, down from 13.3 million tonnes in FY25, reflecting a smaller crop and soft commodity prices.
The company emphasised its focus on cost management while maintaining customer service standards, with full earnings guidance to be provided at its annual general meeting on Feb. 18, 2026.