Bunge North America, the North American operating arm of Bunge Limited, announced it has reached a subscription agreement to invest in Grupo Minsa S.A.B. de C.V. (the “Company”), a leading corn flour producer, securing a controlling financial interest in the Company.
The transaction is expected to close in early 2017, subject to the authorization of the Comisión Federal de Competencia Económica (Mexican Antitrust Commission), the successful delisting of the Company 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 United States. The facilities have a combined annual processing capacity of 700,000 metric tons and produce a broad portfolio of branded corn flours and pre-mixes for tortillas and other goods.
“This investment enhances Bunge’s position in milling, an important contributor to our global Food & Ingredients business,” said Soren Schroder, CEO, Bunge Limited. “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, Indiana. 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,” said Todd Bastean, CEO, Bunge North America. “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.
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