USA – Leading agribusiness company Bunge has acquired Minsa Corporation, the US-based corn milling company for US$75 million to boost its food and ingredients business in the US.
Minsa Corporation, a subsidiary of Grupo Minsa S.A.B. de C.V. has sold its corn flour mills in Red Oak, Iowa and Muleshoe, Texas to the North American global agribusiness and food company.
Minsa manufactures and distributes corn flour and other grain mill products.
As the growing market for industrial ingredients and agricultural commodities such as grains and oilseeds grow, major industry players such as Bunge and Archer Daniels Midland (ADM) are coming up with major acquisitions and partnerships to get a better slice of the cake.
The corn flour market is expected to expand due to its wide application in the food industry including bakery and confectionery, soups, as well as reducing gluten in bakery products such as muffins, cakes, cookies and pastries.
According to Bunge, this purchase was in particularly meant to address the growing demand for tortillas, tortilla chips made out of cornmeal or corn flour in the US market.
“This acquisition is an important strategic step to strengthen our food & ingredients business in the US, and could provide additional growth opportunities for the company’s other regions,” said Todd Bastean, president of Bunge North America.
“These assets, together with our existing plant in Worthington, Indiana, make Bunge a leading US producer of corn masa, a product that is experiencing significant growth not only here, but around the globe.”
With the acquisition, Bunge targets to increase masa milling activities in the region as use of corn masa as a typical ingredient in tortillas, tortilla chips, and other foods gains mileage.
In 2016, Bunge tabled plans to enter the Mexican corn masa milling by buying a controlling stake in the Grupo Minsa S.A.B. de C.V.
Upon the acquisition, Bunge’s masa milling will receive great boost in terms of capacity, new product range and capabilities including specialty products such as organic and non-GMO masa and on-trend colors such as blue and red corn.
Iowa and Texas facilities will also receive an improvement in production with one kilo/2.2 pound packages in addition to traditional bulk, tote and 50-pound bags used by food manufacturers, retailers and consumers.
“With additional locations throughout the US, we will be better able to provide customers with a high-quality, reliable supply of products nationwide,” said Daniel Maldonado, managing director, Bunge Milling.