Grains marketer GrainCorp has boosted its malting operations, agreeing to buy a German maltster for an enterprise value of about $77 million.

GrainCorp said the takeover of GermanMalt GmbH & Co would make its malt sales into the African and South American markets more competitive and boost the company’s ability to supply customers.

GrainCorp chief executive Alison Watkins said the European barley and malt sector had a major influence on world markets, with around half the world’s malt exports originating there.

“With GermanMalt, GrainCorp’s malt portfolio is strengthened, and our capability to meet the needs of brewers will be enhanced,” Ms Watkins said on Monday.

“The acquisition diversifies our earnings base and creates growth opportunities in the region.”

GermanMalt has four malthouses, with an annual production capacity of 190,000 tonnes.

GrainCorp on Monday also said that GrainCorp’s earnings for its fiscal year ending September 30 were tracking well against guidance.

Grain receivals and export grain marketing revenues were in line with expectations and export demand remained strong.

The company said net profit after tax was likely to be comfortably within the guidance of $145 million to $165 million.

GrainCorp shares fell 22 cents, or 2.6 per cent, to close at $8.14.