Agribusiness giant Bunge (NYSE: BG ) announced today that its North American division would be buying Grupo Altex's six Mexican wheat mills that have an annual processing capacity of approximately 800,000 metric tons.
Grupo Altex produces a broad portfolio of wheat products that are used in the preparation of bread flour, prepared flours for baked goods, tortillas, and pizza, as well as semolina for pasta, and will complement Bunge's own wheat milling business, Harinera La Espiga, to provide nationwide coverage to key flour customers. Bunge will also acquire Grupo Altex's product brands and innovation center.
Noting the companies' shared goals, Bunge North American 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 purchase is expected to close by the end of the year subject to regulatory approval and customary closing conditions. Financial terms were not disclosed.