Bunge completes acquisition of Grupo Altex
by Eric Schroeder
WHITE PLAINS, N.Y. — Bunge Ltd. has completed the acquisition of the wheat milling business of Mexico City-based Grupo Altex S.A. de C.V. Financial terms of the transaction, which was first announced on Oct. 23, were not disclosed.
Grupo Altex is a leading Mexican wheat miller with six mills and annual processing capacity of approximately 17.6 million cwts.
As part of the acquisition, Bunge will get an expansive product portfolio that includes products made from many varieties of wheat, including bread flour, prepared flours for baked foods, tortillas and pizza, and semolina for pasta. Additionally, Bunge will receive the company’s brands and its innovation center.
The acquisition comes a little more than year after Bunge secured a majority equity stake in Harinera La Espiga S.A. de C.V., a wheat milling business in Mexico that produces flours and bakery mixes under such brands as Espiga, Esponja, Francesera, Chulita, Galletera and Pastelera. Prior to last year, Bunge held a 31.5% interest in the company with Grupo Neva, S.A. de C.V. and Cerrollera, S.A. de C.V.
Bunge expects EBIT contribution from the Grupo Altex business to be about $35 million in fiscal 2014, perhaps a little higher.