ST. LOUIS, Aug. 30, 2016
/PRNewswire/ -- Bunge North America ("Bunge"), the North
American operating arm of Bunge Limited (NYSE: BG), 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.
About Bunge North
America
Bunge North
America (www.bungenorthamerica.com), the North American
operating arm of Bunge Limited (NYSE: BG), is a vertically
integrated food and feed ingredient company, supplying raw and
processed agricultural commodities and specialized food ingredients
to a wide range of customers in the animal feed, food processor,
foodservice and bakery industries. With headquarters in
St. Louis, Missouri, 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.
About Bunge Limited
Bunge Limited (www.bunge.com,
NYSE: BG) is a leading global agribusiness and food company
operating in over 40 countries with approximately 35,000 employees.
Bunge buys, sells, stores and transports oilseeds and grains to
serve customers worldwide; processes oilseeds to make protein meal
for animal feed and edible oil products for commercial customers
and consumers; produces sugar and ethanol from sugarcane; mills
wheat, corn and rice to make ingredients used by food companies;
and sells fertilizer in South
America. Founded in 1818, the company is headquartered in
White Plains, New York.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains both historical and
forward-looking statements. All statements, other than statements
of historical fact are, or may be deemed to be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements are not based
on historical facts, but rather reflect our current expectations
and projections about our future results, performance, prospects
and opportunities. We have tried to identify these forward-looking
statements by using words including "may," "will," "should,"
"could," "expect," "anticipate," "believe," "plan," "intend,"
"estimate," "continue" and similar expressions. These
forward-looking statements are subject to a number of risks,
uncertainties and other factors that could cause our actual
results, performance, prospects or opportunities to differ
materially from those expressed in, or implied by, these
forward-looking statements. The following important factors, among
others, could affect our business and financial performance:
industry conditions, including fluctuations in supply, demand and
prices for agricultural commodities and other raw materials and
products used in our business; fluctuations in energy and freight
costs and competitive developments in our industries; the effects
of weather conditions and the outbreak of crop and animal disease
on our business; global and regional agricultural, economic,
financial and commodities market, political, social and health
conditions; the outcome of pending regulatory and legal
proceedings; our ability to complete, integrate and benefit from
acquisitions, dispositions, joint ventures and strategic alliances;
our ability to achieve the efficiencies, savings and other benefits
anticipated from our cost reduction, margin improvement and other
business optimization initiatives; changes in government policies,
laws and regulations affecting our business, including agricultural
and trade policies, tax regulations and biofuels legislation; and
other factors affecting our business generally. The forward-looking
statements included in this release are made only as of the date of
this release, and except as otherwise required by federal
securities law, we do not have any obligation to publicly update or
revise any forward-looking statements to reflect subsequent events
or circumstances.
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SOURCE Bunge North America