Bunge to acquire controlling interest in Grupo Minsa’s corn milling business
August 30, 2016 - St. Louis, Missouri - Bunge North America (“Bunge”), the North American operating arm of Bunge Limited (NYSE: BG), announced it has reached a subscription agreement to invest in Grupo Minsa S.A.B. de C.V. (the “Company”), a leading corn flour producer, securing a controlling financial interest in the Company. The transaction is expected to close in early 2017, subject to the authorization of the Comisión Federal de Competencia Económica (Mexican Antitrust Commission), the successful delisting of the Company from the Mexican Stock Exchange, and other customary closing conditions.
As part of the transaction, Bunge will take management control of four mills in Mexico and two mills in the United States. The facilities have a combined annual processing capacity of 700,000 metric tons and produce a broad portfolio of branded corn flours and pre-mixes for tortillas and other goods.
“This investment enhances Bunge’s position in milling, an important contributor to our global Food & Ingredients business,” said Soren Schroder, CEO, Bunge Limited. “The operation is aligned with our core capabilities and increases the share of value added business in our overall portfolio.”
Bunge entered the U.S. corn masa market in early 2014 with the purchase of its first mill in Worthington, Indiana. With this investment, Bunge enters the corn masa market in Mexico.
“This is a natural extension of our successful milling platforms in the U.S. and Mexico that will enable us to expand in a product line that is growing due to demographic and economic trends,” said Todd Bastean, CEO, Bunge North America. “With more facilities, products, and capabilities, we’ll be able to provide a broader offering and enhanced services to our growing customer base, with more logistical and operational flexibility.”
Daniel Maldonado, Managing Director of Bunge in Mexico added, “We’re very excited to add the talent and experience of the Grupo Minsa team to Bunge’s Mexican organization. Together we will enhance our ability to provide high quality, innovative flour solutions to our customers.”
Bunge was advised by Rothschild.
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; 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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