Milling & Baking News - December 11, 2012 - 10

Business 

East Balt to be acquired by JPMorgan Chase group
CHICAGO — One Equity Partners, the private investment arm of JPMorgan Chase & Co., has agreed to acquire East Balt Inc., a Chicago-based baking company focused principally on supplying quick-service restaurant customers. Terms of the transaction, which is subject to regulatory approvals and normal closing conditions, were not disclosed. “East Balt is a quality and service leader, and O.E.P. is excited to help the company grow with its valued customers,” said Thomas Kichler, managing director of One Equity. According to the 2012 Baking Directory & Buyers Guide, East Balt operates two U.S. baking plants — one in Denver and the second in Chicago. The company is regarded as the most “international” of all U.S.-based baking companies, with a total of 20 baking plants in 12 countries spanning four continents. “We are pleased to be entering into a new chapter in East Balt’s history,” said Frank Kuchuris, chairman and chief executive officer. “We believe that this partnership will create exciting opportunities for our company, our customers, and our employees. My management team looks forward to working with One Equity Partners to build a world-class enterprise.” East Balt’s product portfolio includes buns, bagels, biscuits, English muffins, tortillas and bread. The company’s roots date to 1939 when Louis Kuchuris, Frank’s father, acquired Mary Ann, a bankrupt bakery on the northwest side of Chicago that produced a line of bread, rolls, buns and pastries. Under the ownership of Mr. Kuchuris,

Mary Ann serviced restaurants, snack shops, drive-ins, hotels, schools and caterers. The course of the business changed in 1955 when, on a handshake with Ray Kroc, Mr. Kuchuris agreed to begin supplying buns to Chicago-area McDonald’s restaurants owned by the emerging fast-food pioneer. In 1969, Mr. Kuchuris built East Balt Commissary, an automatic bun bakery that exclusively serviced 40 McDonald’s in the Chicago area. Mr. Kuchuris died on his 70th birthday, July 16, 1983. In 2009 he was elected to the Baking Hall of Fame. O.E.P. manages more than $14 billion in commitments and investments solely for JPMorgan Chase. Established in 2001, the group enters into long-term partnerships with companies “to create sustainable value through long-term growth driven both organically and inorganically.” East Balt is the only O.E.P. portfolio business in the baking business. MBN products on the CME Globex electronic trading platform. Following the integration of clearing services, customers will benefit from crossmargining and other capital efficiencies, Mr. Gill said. Beginning Dec. 10, customers were to be able to take advantage of the implied spread between these two distinct wheat futures products. The implied inter-exchange K.C.B.T.-C.B.O.T. wheat futures spread were to be available for trading on CME Globex. CME Group will begin integrating K.C.B.T. business operations and clearing services. The timetable for integration includes: ongoing operation of the K.C.B.T. trading floor for at least six months; integration of clearing systems (specific timeline to be announced in the first quarter of 2013); and maintenance of a committee made up of K.C.B.T. market participants to advise on hard red winter wheat contract terms and conditions for at least three years. MBN The company’s product line includes the traditional range produced by Southern mills, including family flour, corn meal, self-rising flour and other specialty biscuit and muffin mixes. In the notice of the impending auction, the foreclosure was attributed to the company’s “default in the payment of indebtedness.” The auction was ordered by the Superior Court for Catawba County. MBN
bakingbusiness.com / world-grain.com

CME Group completes acquisition of K.C. Board of Trade
KANSAS CITY — The CME Group, the world’s leading derivatives marketplace, on Dec. 3 announced it has completed its acquisition of the Kansas City Board of Trade, the leading futures market for hard red winter wheat. “We’re pleased to complete this transaction, combining K.C.B.T. hard red winter wheat products with our deep and liquid C.B.O.T. soft red winter wheat futures and options markets,” said Terry Duffy, executive chairman and president of the CME Group. “The integration of these two global wheat benchmarks will provide new trading opportunities to commercial grain market participants, wheat traders and customers who continue to rely on these tools to manage their price risk.” Phupinder Gill, chief executive officer of the CME Group, said, “The addition of K.C.B.T. to CME Group will provide significant value to the customers, shareholders and members of both exchanges, beginning on day one. Starting today, we’re integrating hard red winter

wheat futures and options into our suite of already deep and liquid grain and oilseed products. Moving forward, we’ll work with customers to grow existing K.C.B.T. and C.B.O.T. wheat futures and options, while developing new and innovative products that will benefit customers of both varieties of wheat.” Effective immediately, C.M.E. and C.B.O.T. members and K.C.B.T. permit holders will be able to trade each other’s wheat futures and options

Midstate Mills to be sold in auction
NEWTON, N.C. — Midstate Mills, Inc., Newton, was to be put up for sale Dec. 7 in a public auction. The auction was to be conducted at the Catawba County Justice Center in Newton. Midstate operates a 6,500-cwt flour mill in Newton. The facility also has 650,000 bus of grain storage. Midstate’s roots date to 1935, when
10 / December 11, 2012 Milling & Baking News

G.D. Drum acquired Maiden Flour Mill. He operated several mills before building a new facility in Newton in 1961. His son Boyd became president of the company in 1981. Boyd died in December 2011 at the age of 77. A second flour mill built by the company in 2000 in Wilson’s Mills, N.C., was acquired in 2007 by Bartlett Milling Co.

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Milling & Baking News - December 11, 2012

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