Bunge North America, St. Louis, the North American, vertically integrated operating arm of Bunge Ltd., says it has reached a subscription agreement to invest in Grupo Minsa S.A.B. de C.V., a leading corn flour producer, securing a controlling financial interest in Grupo Minsa.
According to a press release, the transaction is expected to close in early 2017, pending authorization of the Mexican Antitrust Commission, the successful delisting of the company from the Mexican Stock Exchange and other customary closing conditions.
As part of the deal, Bunge will manage four mills in Mexico and two 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," says Soren Schroder, CEO of Bunge Ltd. "The operation is aligned with our core capabilities and increases the share of value added business in our overall portfolio."
Bunge moved into the U.S. corn masa market in early 2014, with the purchase of its first mill in Worthington, Ind. This latest investment allows the company to enter 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," notes 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."
Bunge North America is a 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 sectors.