Milling & Baking News - March 11, 2008 - 9

Business

Stewart and AMF to be combined
under new holding company - Ceres

Established in 1947, Stewart Systems Inc. was acquired in 2003 by UCA
Group, controlled by Mr. Kumar. The

ship to provide more
focused execution by
each company."
Mr. Newsome said
the decision to merge
was prompted by
competing demands
in the marketplace.
"Stewart and AMF
were feeling the same
pressure from customers who want both
leading technology as
well as integrated solutions," he said. "How- Gathering in Chicago at the American Society of Baking meeting last
ever, it is impossible week were executive leaders of the merging companies. From left, Tim
to be all things to all Cook, vice-president of sales and marketing AMF Bakery Systems; Ken
people. This (merger) Newsome, president and c.e.o., AMF Bakery Systems; Nand Kumar,
will allow AMF to fo- UCA Group; and Len Kilby, president of Stewart Systems.
cus on dough processing (mixing and make-up) at the front company operates a 200,000-squareof the bakery as well as the wrap room foot facility in Plano.
With roots dating back to 1915, AMF
(packaging and distribution) at the
back of the bakery while Stewart will operates a 150,000-square-foot plant in
focus on all thermal processing (proof- Richmond and a 125,000-square-footing, baking, cooling and pan systems) facility in Sherbrooke, Quebec. The
company was acquired in 1996 by an inin the middle of the bakery."
vestment group led by Mr. Newsome.
More recently, Markel Corp. acquired
the interests of the outside investors.
Ceres will be governed by a board
including an equal number of directors
from AMF and Stewart Systems. The
companies said Markel Corp. would remain a source of capital for expansion.
"When you combine the operating strengths of Stewart and AMF
with the long-term capital commitment of Markel, we believe we can
create a truly exceptional company,"
Mr. Kumar said. MBN
Stewart stacker/unstacker

RICHMOND, VA. - In a move that
would combine under single ownership two of the nation's largest baking equipment manufacturers, Stewart Systems Inc. and AMF Bakery Systems have signed a definitive merger
agreement.
Under the agreement, the two businesses will continue to operate separately under the AMF and Stewart
System names but will be part of a
new holding company to be named
Ceres Industries.
Nand Kumar, chief executive officer
of Plano, Texas-based Stewart Systems,
will become chief executive officer of
Ceres, and Ken Newsome, president
and c.e.o. of AMF, Richmond, will be
president of the holding company.
The companies expect the merger
to close by March 31.
"We have worked with AMF on
most of the major projects in the
United States and abroad over the
past few years," Mr. Kumar said. "We
realized that we can best support our
customers through common owner-

AMF mixer

LNK closes on acquisition of Au Bon Pain
BOSTON - Au Bon Pain and LNK Partners, a private
equity firm focused on the consumer retail sector, have
completed the recapitalization of Au Bon Pain. LNK and
Au Bon Pain management acquired a majority ownership interest in the company with more than $100 million
of fresh equity invested in the transaction.
Au Bon Pain operates cafes focusing on high-quality
breakfast and lunch foods and generated sales revenue
of almost $300 million in 2007.
"We look forward to a productive partnership with
the Au Bon Pain management team," said Henry Nasella, a founding partner of LNK Partners. "The Au Bon
Pain brand is highly recognized and uniquely positioned
with a strong and differentiated consumer value proposition."
Sue Morelli, president and chief executive officer of
Au Bon Pain, said LNK's investment and guidance will
support Au Bon Pain's expansion strategy in the United
States and selected global markets. MBN
bakingbusiness.com / world-grain.com

Riviana Foods breaks ground on rice
packaging and processing plant
HOUSTON - Riviana Foods Inc. broke ground Feb.
22 on a new rice processing and packaging plant and
on-site warehouse and distribution center in Memphis,
Tenn. The 400,000-square-foot facility, which is located
adjacent to Riviana's existing operations, is expected to
be completed by mid-2010 and will employ 300.
"Development of the new facility will help us reach
our goal of transforming Riviana into the world's most
efficient, technically advanced rice company," said Bastiaan de Zeeuw, president and chief executive officer.
Packaging and shipping of Riviana's top brands - Mahatma, Water Maid, Carolina and River rices - are currently handled from the existing Memphis plant. Upon
completion of the new facility, Riviana said it will consolidate certain operations to Memphis, including Success
and Minute, the company's top instant rice brands. MBN

Milling & Baking News

March 11, 2008 / 9

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - March 11, 2008

Table of Contents for the Digital Edition of Milling & Baking News - March 11, 2008