Seaboard Corp. and Groupe Mimran (Mimran Group) recently announced that they have entered into a memorandum of understanding (MOU) whereby Seaboard intends to acquire the Mimran Group's flour milling and associated businesses located in Senegal, Ivory Coast and Monaco. The proposed acquisition is subject to negotiation and execution of a definitive purchase agreement and finalization of Seaboard's due diligence.
Seaboard would operate the business in its Commodity Trading & Milling Segment. The acquisition would increase the flour and feed milling capacity of its consolidated and non-consolidated businesses by approximately 15% to more than 24,000 metric tons per day and its grain trading volume by approximately 9% to approximately 10.5 million metric tons per year.
"We are excited to further our investment in sub-Saharan Africa with this acquisition and believe the culture and operations will be a great fit with our existing structure,” said Steven Bresky, Seaboard president and chief executive officer and chairman of the board. “Seaboard has had commercial ties with the Mimran Group for almost 40 years, and we look forward to integrating the business into our existing trade strategy and expand our cargo and trade opportunities as a result of this transaction. We expect to continue to work closely together with the Mimran Group by leveraging our existing strengths into a better industrial and trade based business."
Mimran Group is one of the leading agri-food groups in West Africa, operating sugar refining, flour milling and animal feed businesses. Established more than 60 years ago by the Mimran family, its main companies in flour milling and sugar refining include Grands Moulins de Dakar (GMD), Grands Moulins d'Abidjan (GMA) and Compagnie Sucrière Sénégalaise (CSS), respectively.
"We are delighted to enter into this (MOU) with Seaboard,” said David Mimran, president director general of GMA and GMD. “An important consideration for us was that any new owner shares the same values and culture that we have instilled within our businesses over the years. Just like ourselves, Steven Bresky is the third generation of his family running a substantial business, and I very much look forward to assisting Mr. Bresky and his team in any way we can with respect to this new chapter in the development of the business."