Miller Milling Co., LLC, a U.S. subsidiary of Nisshin Flour Milling Inc., has entered into an asset purchase agreement with Cargill, Horizon Milling and ConAgra Foods Food Ingredients Company, Inc., to acquire four flour mills in the U.S. for $215 million.
Upon completion of the transaction, Miller Milling will become the fourth largest flour milling company in the U.S. and Nisshin’s overseas milling capacity will increase to approximately 50% of its worldwide capacity.
Nisshin entered the U.S. market, the largest flour market amongst the developed countries, by acquiring Miller Milling in March 2012. Since then, Nisshin has been actively expanding its businesses in the U.S., by increasing 30% of its milling capacity through expansion of Winchester Mill in Virginia and Fresno Mill in California in February 2013, as well as by taking advantage of Nisshin’s key strengths including research and development, milling technology and stable supply of high-quality wheat flour.
In its announcement of the transaction, Nisshin recognized that the milling industry in the U.S. is entering a significant reorganization stage and said it was essential for Miller Milling to take on strategic initiatives for further growth of its businesses.
Upon the completion of the purchase, Miller Milling will have a grain milling capacity of approximately 5,900 tons per day.
The purchase is expected to be finalized at the end of May. Completion of the transaction is subject to U.S. government approval.