ica, a unit of food processing firm Bunge, is set to acquire wheat milling business of Grupo Altex in Mexico.Grupo Altex produces a wide range of products from wheat including, bread flour, prepared flours for baked goods, tortillas and pizza and semolina for pasta. The company operates six mills with an annual processing capacity of approximately 800,000t.
The acquisition also includes Grupo Altex's product brands and its innovation center. It will complement Bunge's existing wheat milling business, Harinera La Espiga.
Bunge Food & Ingredients managing director Gordon Hardie said that this investment further strengthens the company's core food and ingredients segment by building on the consistent success of its North American milling business.
"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," Hardie added.
Bunge North America president and CEO Todd Bastean said, "By leveraging our Mexico milling assets with our wheat origination capabilities in North America, we can provide customers with an efficient, reliable supply chain."
The transaction is subject to certain regulatory approval and customary closing conditions. It is expected to close by the end of the year.
In support of the deal, Rothschild and Rabobank have advised Bunge.
Bunge North America is a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to poultry, food processor, foodservice and bakery industries.
