Australian grains marketer and maltster GrainCorp is buying European malt producer GermanMalt GmbH & Co KG for $77 million. GermanMalt has four malthouses, with 190,000 tonnes of malting capacity per annum.

The acquisition would mean more competitive malt sales into the African and South American markets and stronger supply proposition for GrainCorp.

GrainCorp managing director and chief executive officer Alison Watkins said the European barley and malt sector has a major influence on world markets as around half the world's malt exports originate there.

"With GermanMalt, GrainCorp's malt portfolio is strengthened, and our capability to meet the needs of brewers will be enhanced.

"The acquisition diversifies our earnings base and creates growth opportunities in the region," Ms Watkins said on Monday.

The grains handler also reiterated its guidance, saying the performance of the group for its fiscal year ending September 30 were tracking well against expectations.

“Grain receival tonnage and domestic and export grain marketing revenues are in line with expectations. Overall export and export demand remains strong due to lare quantities of available grain.”

The company expects full year results to be in line with NPAT (net profit after tax) guidance of $145 million to $165 million.