Bunge completes Grupo Altex’s wheat milling business takeover in Mexico

Bunge North America has completed the acquisition of Mexico-based Grupo Altex’s wheat milling business.

The financial terms of the deal have been not disclosed.

Grupo Altex has six mills with a processing capacity of approximately 800,000t per year.

The company produces wheat products including bread flour, prepared flours which are used for production of baked goods, tortillas and pizza and semolina for pasta.

The acquired entity complements Bunge’s existing wheat milling business, Harinera La Espiga, and it is expected to allow the company expand its reach to key flour customers in the country.

When the agreement was signed in October, Bunge Food & Ingredients managing director Gordon Hardie said that the 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.

As part of the acquisition, Bunge has also gained ownership of Grupo Altex’s product brands and its innovation centre.

Grupo Altex executive vice president Jose B. Avalos said, "We are confident that the sale of the wheat milling business to Bunge, while not an easy decision, is in the best interest of our key stakeholders, particularly our customers and employees."

Rothschild and Rabobank provided advisory services to Bunge on the transaction.

Bunge North America, the North American unit of Bunge, supplies raw and processed agricultural commodities and specialised food ingredients to customers in the livestock, poultry, food processor, foodservice and bakery segments.

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Image: Wheat mill in Guadalajara, Mexico. Photo courtesy of Bunge North America, Inc.