Bunge North America has purchased Minsa Corporation for $75 million, expanding its corn-milling capabilities to meet growing demand for tortillas, tortilla chips and other corn products.
Bunge currently produces corn masa, the primary ingredient in tortillas and tortilla chips, which it supplies to food manufacturers.
The company claims the purchase will drastically increase its corn milling capacity, and allow the brand to increase production of organic and non-GMO masa, as well as specialist products such as red and blue corn.
Bunge will acquire corn-milling facilities in Red Oak, Iowa and Muleshoe, Texas, as part of the deal.
Both the Iowa and Texas facilities produce 50lb and 2.2lb bags of corn masa, meaning the company can effectively supply major manufacturers with bulk amounts of corn masa and provide more convenient packs for smaller retailers.
Todd Bastean, president of Bunge North America said: “This acquisition is an important strategic step to strengthen our Food & Ingredients business in the U.S., and could provide additional growth opportunities for the company’s other regions.
“These assets, together with our existing plant in Worthington, Indiana, make Bunge a leading U.S. producer of corn masa, a product that is experiencing significant growth not only here, but around the globe.”
Daniel Maldonado, managing director of Bunge Milling added: “With additional locations throughout the US, we will be better able to provide customers with a high-quality, reliable supply of products nationwide.
“We look forward to partnering with customers to help build their brands and using our strong innovation capabilities to further support them in meeting evolving consumer needs with an on-trend portfolio.”
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