ConAgra, Cargill and CHS to merge North American flour milling businesses
05 Mar 2013
US-based foods giant ConAgra Foods Inc, crop giant Cargill, and diversified energy, grains and foods company CHS Inc yesterday said that they will merge their North American flour milling businesses into a new company called Ardent Mills.
Ardent Mills will bring together two of the nation's leading flour milling companies, ConAgra Mills and Horizon Milling, a Cargill-CHS joint venture formed in 2002.
ConAgra and Cargill will each hold a 44-per cent stake in Ardent Mills, with CHS holding the remaining 12 per cent. All three companies will have representatives on Ardent Mills' board.
ConAgra, Cargill and CHS will contribute their respective milling operations to Ardent Mills on a cash-free, debt-free basis in exchange for the agreed ownership interests.
Ardent Mills operations and services will comprise of 44 flour mills, three bakery mix facilities and a specialty bakery, all located in the US, Canada and Puerto Rico.
Horizon Milling president, Dan Dye will become CEO of Ardent Mills, and the headquarters will be determined later, the companies said in a joint statement.
Sales for ConAgra Mills, currently a part of ConAgra Foods' Commercial Foods segment, were approximately $1.8 billion last year, while sales for Horizon Milling were approximately $2.5 billion.
Ardent Mills will be self-financed through cash flow from operations and its own bank debt and credit facility.