Bunge investing in Mexico corn milling businessBunge investing in Mexico corn milling business
Bunge will manage four of Grupo Minsa's corn flour mills in Mexico and two mills in U.S.
August 31, 2016
Bunge North America, the North American operating arm of Bunge Ltd., announced Aug. 30 that it has reached a subscription agreement to invest in Grupo Minsa S.A.B. de C.V., a leading corn flour producer in Mexico, securing a controlling financial interest in the company.
The transaction is expected to close in early 2017, subject to authorization of the Mexican Antitrust Commission, the successful delisting of Gropo Minsa 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 U.S. The facilities have a combined annual processing capacity of 700,000 metric tons and produce a broad portfolio of branded corn flours and premixes for tortillas and other goods.
"This investment enhances Bunge's position in milling, an important contributor to our global Food & Ingredients business," Soren Schroder, chief executive officer of Bunge Ltd., said. "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, Ind. 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," Bunge North America CEO Todd Bastean said. "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.
Bunge North America, headquartered in St. Louis, Mo., is a vertically integrated food and feed ingredient company that supplies raw and processed agricultural commodities and specialized food ingredients to customers in the animal feed, food processor, foodservice and bakery industries. 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.
Bunge Ltd., headquartered in White Plains, N.Y., is a leading global agribusiness and food company operating in more than 40 countries with approximately 35,000 employees.
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