Dawn of new era for Bunge bakery business
looking to cream off a gain of about $2 million, or 2 cents per
share, on the sale of its US bakery business to privately-held Dawn
Food Products.
Last month the New York-based company announced that its subsidiary Bunge North America would be selling up its bakery business to Dawn Food Products. A sale that includes the facilities that manufacture, market and sell mixes, frozen dough, syrups and toppings.
At the time, Bunge expected to recognise a gain on the sale of approximately $4 million, or approximately $0.04 per fully diluted share. Short of the final figures announced last week.
In December the US company announced a further deal expected to close in the first quarter through its subsidiary Bunge Alimentos.
The company has entered into a purchase and sale agreement with J. Macedo, whereby Bunge Alimentos will purchase J. Macedo's wheat-based industrial, food service and bakery products businesses and Bunge Alimentos will sell its wheat-based consumer products business to J. Macedo.
The transaction also includes a manufacturing and operational agreement, whereby Bunge Alimentos and J. Macedo will supply each other with consumer flour and industrial flour, respectively, and coordinate wheat origination. Although precise terms of the deal were not disclosed, both parties said at the time that they intend to capitalise on 'shared logistics opportunities'.
