Bunge North America, the North American operating arm of Bunge Limited, announced that it has purchased Minsa Corporation, a wholly-owned U.S. subsidiary of Mexican corn miller Grupo Minsa S.A.B. de C.V., valued at US$ 75 million. The acquisition includes corn flour mills in Red Oak, Iowa and Muleshoe, Texas.
Corn masa, the primary ingredient for tortillas, tortilla chips, and other foods, is a key growth category in packaged food and food service channels, with sales projected to steadily increase.
The deal includes a license agreement for the "exclusive use of the Minsa brand in the United States for a non-renewable period of two years," according to a statement Minsa sent to Mexican stock market regulators.
The company explained that the money will be used in strategic investments, the improvement in the quality of its products and the modernization of its plants. "The operation significantly strengthens the balance and the flow structure of the company, and aligns with Minsa's consolidation strategy within the industry and in the domestic market," says the document.
"This acquisition is an important strategic step to strengthen our Food & Ingredients business in the U.S., and could provide additional growth opportunities for the company's other regions," said Todd Bastean, president Bunge North America in a statement. "These assets, together with our existing plant in Worthington, Indiana, make Bunge a leading U.S. producer of corn masa, a product that is experiencing significant growth not only here, but around the globe."
The acquisition creates scale in Bunge's masa milling capacity and brings additional products and capabilities including specialty products such as organic and non-GMO masa and on-trend colors such as blue and red corn.
In addition to traditional bulk, tote and 50-pound bags used by food manufacturers and food service customers, both the Iowa and Texas locations can produce one kilo/2.2-pound packages commonly sold by retailers under their own store brands.
"With additional locations throughout the U.S., we will be better able to provide customers with a high-quality, reliable supply of products nationwide," said Daniel Maldonado, managing director, Bunge Milling. "We look forward to partnering with customers to help build their brands and using our strong innovation capabilities to further support them in meeting evolving consumer needs with an on-trend portfolio."
In addition to a full line of masa products, Bunge's portfolio of shortenings and oils makes it the only major supplier of all key ingredients used to manufacture tortillas and related products.