AN AGRICULTURAL firm has expanded following an acquisition.

GrainCo Ltd has purchased buildings and equipment belonging to Mole Valley Farmers in Piercebridge near Darlington.

The new 15 acre site will allow GrainCo to store more than 40,000 tonnes of seed, taking the company’s overall available capacity to more than 200,00 tonnes.

GrainCo, based in South Shields, has also bought a machine that can process more than 4,000 tonnes of seed.

Doug Gray, business development director at GrainCo, said: "The acquisition is an important part of the continued strategic development of the business.

“Given our existing expertise in grain storage, marketing and seed supply the purchase of the site provides clear synergies.

“The seed plant enables us to improve our service in this part of the sector and we are very grateful for the continued support given by our farmer customers over the autumn."

The company has six factories across the North-East and Scotland, including dockside bases in Blyth, Teesport, Sunderland and Port of Tyne.

Each year, it trades in excess of one million tonnes of grain including wheat, feed barley, malting barley, oats and oil seed rape.

Mr Gray added: “It was imperative to complete the transaction to a strict timetable to ensure we could utilise the resources the site offers before the current harvest.

“The diligence shown by our advisers was second to none and ensured we could get this deal across the line in time for the harvest.”

Last year, GrainCo, who employ around 50 people, exported one of the largest shipments of grain to ever leave the UK.

The company spent nearly seven days loading more than 60,000 tonnes of barley on board a cargo vessel at the Port of Tyne.

It was bound for Saudi Arabia to be used as animal feed and followed an earlier shipment of 33,000 tonnes to Kuwait.

GrainCo was supported in the acquisition of the new facilities by Square One Law.

James Bryce, head of corporate and commercial at Square One Law, said: “This acquisition is a very good fit with GrainCo’s existing operations, enabling it to increase its capabilities and presence in the market. 

“The success of GrainCo’s business model further emphasises the strength of the North East agricultural sector and its importance to the region’s economy.”