Bunge North America, the North American operating arm of Bunge Ltd., has agreed to buy the wheat milling business of Grupo Altex S.A. de C.V.
Bunge North America, the North American operating arm of Bunge Ltd., 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 conditions.
A Mexican wheat miller, Grupo Altex operates six mills with an annual processing capacity of approximately 800,000 metric tons. It produces a broad portfolio of products from many varieties of wheat including bread flour, prepared flours for baked goods, tortillas, 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 Ltd. “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.