Bunge to purchase Grupo Altex Wheat Mills in Mexico
ST. LOUIS, Mo., Oct. 23, 2013
ST. LOUIS, Mo., Oct. 23, 2013 /PRNewswire/ -- Bunge North America, the North
American operating arm of Bunge Limited (NYSE: BG), announced that it has
agreed to buy the wheat milling business of Grupo Altex S.A. de C.V.
Financial terms were not disclosed. The purchase is expected to close by the
end of the year subject to regulatory approval and customary closing
A leading Mexican wheat miller, Grupo Altex operates six mills with an annual
processing capacity of approximately 800 thousand metric tons. It produces a
broad portfolio of products from many varieties of wheat including bread
flour, prepared flours for baked goods, tortillas and pizza and semolina for
pasta. These mills are well placed to serve Mexico's key population centers
and will complement Bunge's existing wheat milling business, Harinera La
Espiga, to provide nationwide coverage to key flour customers.
"This investment further strengthens our core food and ingredients segment by
building on the consistent success of our North American milling business,"
said Gordon Hardie, managing director, Food & Ingredients, Bunge Limited.
"Grupo Altex has an experienced team, efficient assets and an innovative
product portfolio that will provide a solid platform for profitable growth in
a compelling market."
In addition to the mills, Bunge is acquiring Grupo Altex's product brands and
its innovation center.
"Grupo Altex shares Bunge's approach of focusing on quality and service as we
partner with some of the world's most well-known food companies to protect the
integrity of their products," said Todd Bastean, president and CEO, Bunge
North America. "By leveraging our Mexico milling assets with our wheat
origination capabilities in North America, we can provide customers with an
efficient, reliable supply chain."
Jose B. Avalos, executive vice president of Grupo Altex stated, "We are
confident that the sale of the wheat milling business to Bunge, while not an
easy decision, is in the best interest of our key stakeholders, particularly
our customers and employees. Bunge is well placed to grow the business. The
proceeds from the sale will be utilized to strengthen our position in the
fruit and vegetable processing businesses, fully in line with our strategic
Bunge was advised by Rothschild and Rabobank on the transaction.
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 livestock,
poultry, 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 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, including the closing of
the transaction discussed in this press release; 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.
SOURCE Bunge North America
Contact: Public Affairs, Telephone: (314) 292-2000, Deb.email@example.com
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