Global agriculture group Bunge has announced that it has entered into definitive agreements to sell its North America dry corn and corn masa milling businesses to Grain Craft.
The transaction, of which the financial terms were not disclosed, includes seven facilities in total: three dry corn milling facilities in Nebraska, Kansas and Illinois; three dry masa facilities in Texas, Indiana and Iowa; and a transload and packaging facility in Mexico. The dry corn milling division will continue to be headquartered in St Louis, Missouri.
Grain Craft is one of the largest independent flour millers in the US. It was formed in 2014 by the merger of Milner Milling, Pendleton Flour Mills and Cereal Food Processors. The company is headquartered in Chattanooga, Tennesee, and operates from 13 mills producing a variety of wheat flours. The acquisition will bring an additional 600 employees to the group’s workforce.
In a statement announcing the sale, Bunge’s co-president of agribusiness, Julio Garros, said that Bunge carefully considered how the regional business fits within its long-term plans and made the strategic decision to focus on other core areas of its business that are “more strongly connected” to its global value chains.
He added: “We are grateful for the hard work and dedication of our milling team and their commitment to running the business safely, and efficiently while delivering high-quality products to our customers”.
Pete Frederick, president and CEO of Grain Craft, commented: “We are excited to welcome the Bunge corn milling team to our Grain Craft family. This transformational acquisition expands our product offerings into an adjacent category and, along with the expertise of our entire team, will enhance our ability to service our customers across a broader spectrum of food ingredients.”
A closing date on the transaction has not yet been established. The completion of the sale is subject to regulatory approvals and customary closing conditions.
by Melissa Bradshaw
Source: foodbev.com
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