Milling & Baking News - July 1, 2008 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
JULY 1, 2008

bakingbusiness.com / foodbusinessnews.net

FEATURE

East and west bookends: Flowers to
buy bakers in Arizona and Florida

It's what's inside
that counts
Cereal makers shrink boxes,
reformulate product to add
value.
Story on Page 21

LATE NEWS

Food and Ingredients
profit soars at ConAgra
OMAHA - Operating profit in
the Food and Ingredients segment
at ConAgra Foods, Inc. rose 18%
for the year ended May 25. Operating profit of $511.7 million compared with $434.8 million in fiscal
2007. Food and Ingredients sales of
$4,128.1 million were 21% higher
than $3,421.5 million in the previous year. The unit's sales benefited
from milling operations, where
higher wheat costs were passed
on as higher selling prices. Companywide, ConAgra posted fiscal
2008 net income of $930.6 million,
or $1.91 per share on the common stock, up 22% from $764.6
Continued on Page 8

THOMASVILLE, GA. - Flowers Foods
Inc., in separate announcements last
week, said it will acquire
Phoenix-based Holsum
Bakery Inc., and Lakeland,
Fla.-based
ButterKrust Bakery. Combined,
the acquisitions
will cost Flowers
nearly a quarter
billion dollars.
When completed, the transactions would
give Flowers a strengthened presence
in Florida, dominant presence in Arizona and a foothold in California and
Nevada.
According to a June 24 filing with the
Securities and Exchange Commission,
the Holsum transaction is valued at $150
million, half to be paid in cash and half
in newly issued Flowers common stock.
Holsum, which has annual sales of
$146 million, will operate under its cur-

rent name as a subsidiary of Flowers
Foods, the company said.
Founded in 1881, Holsum
employs 580 at two baking
plants in Arizona and
sells its products
through independent distributors
who serve retail
and food service
customers in Arizona, New Mexico,
Southern California
and southern Nevada.
The company's fresh bread and rolls are
marketed under the Holsum, Aunt Hattie's and Roman Meal brands.
Holsum has long enjoyed high esteem
in the baking industry for the leadership
it has maintained in Arizona even as
many other independent regional baking companies around the country have
been acquired by larger companies.
"We are fortunate to have this fine
Continued on Page 9

Bunge to acquire Corn Products
WHITE PLAINS, N.Y. - In a move
that would combine two of the oldest and largest agricultural businesses
in the United States, Bunge Ltd. on
June 23 announced its intent to acquire
Westchester, Ill.-based Corn Products International, Inc. for approximately $4.8
billion, which includes the assumption
of $414 million of Corn Products debt.
As part of the agreement, Corn Products shareholders would receive shares of
Bunge common stock worth $56 for each

share of Corn Products common stock
they own - a 31% premium to Corn
Products closing share price of $42.90 on
June 20 and a 25% premium to the 20-day
average trading price of $44.90.
Once the transaction is completed,
Corn Products shareholders would own
approximately 21% of Bunge. The transaction is expected to close in the fourth
quarter of 2008.
In addition to their scale and long histories, Corn Products and Bunge stand
out among U.S. agribusiness companies
for their disproportionately large presence outside the United States. Both
companies have significant operations
throughout the Western Hemisphere.
Bunge has major operations in Europe
and the former Soviet Union, as well
as India, Southeast Asia and significant
Continued on Page 11

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Milling & Baking News - July 1, 2008

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