GROWMARK Announces Purchase of B-G Fertilizer, LLC Interest, Lease of Bunge Fertilizer Terminals
December 31, 2012 - St. Louis, Missouri - GROWMARK, Inc., Bloomington, Ill., today announced it has agreed to purchase Bunge North America's interest in B-G Fertilizer, LLC. B-G Fertilizer, LLC owns and operates the former CF Industries terminal located in Cincinnati, Ohio to serve the needs of retail customers that provide fertilizer to farmers. Terms of the transaction were not disclosed.
"We have had a great working relationship with Bunge during the past two years," said Jim Spradlin, GROWMARK Vice President, Agronomy. "The Cincinnati terminal has brought value to the dealers in the areas it serves and we look forward to continuing to provide the outstanding customer experience for which the team at Cincinnati is known."
GROWMARK and Bunge also announced that GROWMARK will lease Bunge fertilizer assets located in Council Bluffs, Iowa and Fulton, Illinois. These facilities will be incorporated into the current GROWMARK portfolio to expand the cooperative's scope and reach.
"We are pleased to announce the additions of Council Bluffs and Fulton to our existing terminal portfolio," said Rod Wells, GROWMARK Plant Food Division Manager. "There are exciting opportunities at each facility to capitalize on truck transportation to their associated grain terminals in the form of back hauls. This should provide efficient sourcing opportunities for area retailers. The Council Bluffs facility, in particular, is new construction and state of the art. We look forward to serving the dealer network from these two locations."
"Bunge realized benefits from our North American fertilizer business including our investment in B-G Fertilizer, but have decided to focus our investments in our other lines of business," said Bailey Ragan, vice president, Grain, Biofuels and Fertilizer for Bunge North America. "We look forward to continuing our strong relationship with GROWMARK through the lease of our terminals in Council Bluffs and Fulton."
Overall, the acquisition and lease agreements represent approximately 130,000 tons of dry and liquid plant food storage.
GROWMARK, Inc. is a cooperative providing agriculture-related products and services, as well as grain marketing in 45 states and Ontario, Canada. GROWMARK owns the FS trademark, which is used by affiliated member cooperatives. More information is available at www.growmark.com
About Bunge North America
Bunge North America (www.bungenorthamerica.com), the North American operating arm of Bunge Limited (NYSE: BG), is a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to a wide range of customers in the animal feed, food processor, foodservice and bakery industries. With headquarters in St. Louis, Missouri, Bunge North America and its subsidiaries operate grain elevators, oilseed processing plants, edible oil refineries and packaging facilities, and corn, wheat and rice mills in the U.S., Canada and Mexico.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 35,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “plan,” “intend,” “estimate,” “continue” and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances, including the closing of the transaction discussed in this press release; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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