Bunge North America, the North American operating arm of Bunge Ltd., announced this week that it has purchased Minsa Corp., a wholly owned U.S. subsidiary of Grupo Minsa S.A.B. de C.V., valued at $75 million. The acquisition includes corn flour mills in Red Oak, Iowa, and Muleshoe, Texas.
Corn masa, the primary ingredient for tortillas, tortilla chips and other foods, is a key growth category in packaged food and foodservice channels, with sales projected to increase steadily.
"This acquisition is an important strategic step to strengthen our Food & Ingredients business in the U.S. and could provide additional growth opportunities for the company's other regions," Bunge North America president Todd Bastean said. "These assets, together with our existing plant in Worthington, Ind., make Bunge a leading U.S. producer of corn masa, a product that is experiencing significant growth not only here but around the globe."
The acquisition creates scale in Bunge's masa milling capacity and brings additional products and capabilities, including specialty products such as organic and non-genetically modified masa and on-trend colors such as blue and red corn. In addition to traditional bulk, tote and 50 lb. bags used by food manufacturers and foodservice customers, both the Iowa and Texas locations can produce 2.2 lb. packages commonly sold by retailers under their own store brands.
"With additional locations throughout the U.S., we will be better able to provide customers with a high-quality, reliable supply of products nationwide," said Daniel Maldonado, managing director of Bunge Milling. "We look forward to partnering with customers to help build their brands and using our strong innovation capabilities to further support them in meeting evolving consumer needs with an on-trend portfolio."
In addition to a full line of masa products, Bunge's portfolio of shortenings and oils makes it the only major supplier of all key ingredients used to manufacture tortillas and related products.