Milling & Baking News - April 29, 2014 - 18

Business 

(No. 1 in the United States) and ConAgra
Foods' flour milling business, ConAgra
Mills (No. 3) to establish Ardent Mills
L.L.C. (Ardent Mills)," Nisshin said. "Cereal Food Processors, Inc. (No. 4) is also
said to be under sale process. Taking such
situation into consideration, it was essential for Miller Milling to take strategic
initiatives for further growth of its businesses. The opportunity arose as Ardent
Mills' parent companies prepared to divest four flour milling facilities in order
to proceed with the formation of Ardent
Mills and conclude regulatory reviews by
the U.S. Department of Justice."
Nisshin went on to say the acquisition
will allow the company to capitalize on its
wheat purchasing capabilities.
"The transaction will enable Miller
Milling to enhance its ability to gather
procurement-related information with
significantly increased procurement
volume, as well as diversified types of
wheat and their origins," the company
said. "Nisshin finds these advantages
highly meaningful for our further global
expansion of flour milling businesses.
Nisshin will accelerate the expansion of
its U.S. businesses with the transaction

and continue to focus on expansion of
overseas businesses going forward."
Kazuyoshi Watanabe serves as president and chief executive officer of Miller
Milling. Miller Milling is headquartered
in Bloomington, near Minneapolis.
The acquisition of the four mills also
may be seen as the largest step yet by
Nisshin Seifun Group toward diversifying its business away from its Japanese
milling roots.
"Nisshin has been actively taking initiatives to expand overseas businesses,
including the acquisitions of Miller Milling in March 2012 and Champion Flour
Milling Ltd. in February 2013," Nisshin
said. "With the transaction, overseas
milling capacity will reach approximately 7,500 tonnes/day (grain based), which
accounts for approximately 50% of total
milling capacity of Nisshin; nearly equal
to the milling capacity in Japan."
In a 2012 interview with Milling & Baking News, shortly after the Miller Milling
acquisition, Hiroshi Oeda, president of
Nisshin, offered insights into the company's strategic plan dubbed "NNI-120"
driving its expansion.
"'NNI' stands for New Nisshin

Ardent partners 'pleased' with Nisshin agreement
OMAHA, NEB. - Responding to the announcement by Miller Milling Co. of a deal to acquire
four flour mills from ConAgra Mills and Cargill, the partners who will form Ardent Mills said they
were "pleased" with the pending transaction and restated their expectation the formation of
Ardent Mills would be completed before the end of June.
The official statement, offered by Becky Niiya, senior director of communication and external
relations for ConAgra Foods, Inc., follows:
ConAgra Foods, Cargill and CHS are pleased to enter into a purchase agreement with Miller
Milling Company - a U.S.-based subsidiary of Tokyo-based Nisshin Flour Milling Inc. and a
well-respected milling operation. The agreement is consistent with the companies' plan to divest four flour milling facilities in order to proceed with the formation of Ardent Mills. The sale
of all four mills is expected to be completed prior to or simultaneous with the completion of the
Ardent Mills transaction, which we expect to be in Q2 of calendar year 2014 as planned. Completion of the Ardent Mills transaction remains subject to the conclusion of regulatory review
by the U.S. Department of Justice, financing, and other certain customary closing conditions. MBN

Innovation," Mr. Oeda said in the interview. "We named our new business
plan as NNI-120 because 120 signifies that 2020 is our 120th year of operation. The objectives of NNI-120 include: 'Achieving US$12.5 billion in
consolidated sales' with '30% of this
revenue being realized from overseas
operations' in the near future.
"In order to carry out these objectives,
we plan to invest in those focused segments and strengthen both flour milling
and processed food business, which are
our core competencies, and aggressively
seek opportunities of mergers/acquisitions
and business alliances both domestically
and overseas."
Nisshin Seifun Group Inc. is one of Japan's largest food companies, with annual
revenues totaling Y490 billion ($4.8 billion),
EBITDA of Y35.8 billion ($329 million) and
net income in fiscal 2013 of Y14 billion ($141
million). Nisshin shares trade on the Tokyo
Stock Exchange where its current market
capitalization is Y322.6 billion ($3.1 billion).
Shares are mainly owned by Japanese
and international investment managers.
Its third largest shareholder, with a stake
of slightly above 5%, is Yamazaki Baking
Co., which also is Nisshin's largest flour
customer.
While flour milling is the group's base
business, it diversified into other foods like
sauces and soups, has a feed and petfood
unit, makes pharmaceuticals, and is a leading yeast manufacturer in Asia.
Nisshin entered flour milling in North
America through the purchase of Rogers
Foods of British Columbia, and it currently
has two mills in that western province of
Canada. It entered the U.S. food business
by establishing a pasta plant in Tacoma,
Wash., under the Medallion Foods name.
Besides Japan, Canada and the United
States, Nisshin operates flour mills in New
Zealand, recently acquired from Goodman Fielder, and a mill in Thailand. MBN

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www.shawneemilling.com
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Good Millers Since 1906
sgarlow@shawneemilling.com
18 / April 29, 2014 Milling & Baking News

Shawnee Milling Company
P.O. Box 1567
Shawnee, OK 74802-1567
405-273-7000
Okeene Milling Company
P.O. Box 1000,
Okeene, OK 73763
580-822-4411

bakingbusiness.com / world-grain.com

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Milling & Baking News - April 29, 2014

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