Trimex buying Gruma wheat milling business
MONTERREY, MEXICO — Grupo Trimex, S.A. de C.V. has reached agreement to acquire the wheat flour milling operations of Gruma S.A.B. de C.V. in Mexico. As part of the $200 million transaction, Mexico City-based Grupo Trimex will acquire all the shares representing Molinera de México, S.A. de C.V.’s capital stock, owned by Gruma, as well as the assets owned by a subsidiary of Grupo Industrial Maseca, S.A.B. de C.V., related to wheat flour production.
Gruma said proceeds from the sale will be used primarily to pay down Gruma and Gimsa’s corresponding debt, thus strengthening the financial structure of both companies.
“This transaction is in line with the company’s strategy of focusing on its core businesses, always aiming to enhance value creation,” Gruma said.
Grupo Trimex is a Mexican milling company with almost a 30-year history in the industry.
According to the 2014 Grain & Milling Annual published by Sosland Publishing Co., Gruma operates flour mills in Juarez in the state of Chihuahua (60 tonnes per day milling capacity), Gomez Palacio in Durango (400 tonnes), Naulcalpan in Estado de Mexico (500 tonnes) and Puebla in Puebla (1,050 tonnes).
Grupo Trimex operates mills in Mexico City (three mills, with daily capacity of 300 tonnes, 480 tonnes and 500 tonnes), Acapulco in Guanajuato (no capacity information available), Irapuato in Guanajuato (180 to 200 tonnes), Oaxaca in Oaxaca (no capacity information) and Coatzacoalcos in Veracruz (no capacity information).
The transaction is subject to the approval of the Mexican Federal Trade Commission and to certain closing conditions agreed upon by the parties. The closing is expected to take place by October 2014.