Milling & Baking News - June 12, 2012 - 10

Business 

Viterra shareholders approve acquisition by Glencore
CALGARY, ALTA. — Shareholders of Viterra Inc. have passed a special resolution to approve Glencore International P.L.C.’s acquisition of all issued and outstanding common shares of Viterra for C$16.25 per share, in cash. The resolution was approved by 99.8% of the votes cast by shareholders. “The result of today’s vote demonstrates strong support for this transaction from Viterra’s shareholders,” said Mayo Schmidt, president and chief executive officer of Viterra. “We are very proud of the global business we have built, and our shareholders are being rewarded for their

support of our company and its contributions to our employees and communities in which we live and operate.”

Viterra expects the transaction to close by the end of July. Canada-based Viterra operates three business segments: grain handling and marketing, agri-products and processing. Based in Baar, Switzerland, Glencore is one of the world’s largest integrated producers and marketers of commodities. The company has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals, energy products and agricultural products. MBN Mid-Atlantic and Northeast markets.” The ratings service said it believes credit metrics will remain near current levels through fiscal 2012. As of the first quarter ended April 21, 2012, S.&P. estimated adjusted debt to EBITDA was about 2.8x and the ratio of funds from operations to total adjusted debt was 27%. “We expect the company’s pro forma credit metrics to be near or within the indicative ratios for Flowers’ ‘intermediate’ financial risk profile over the next 12-18 months as acquisition-related synergies and EBITDA expansion are realized,” S.&P. said. MBN

S.&P.: Flowers Foods ratings and outlook not affected by Lepage
CHICAGO — Standard & Poor’s Ratings Services on June 5 said its ratings and outlook on Thomasville, Ga.-based Flowers Foods Inc. are not affected by the company’s plan to purchase Lepage Bakeries Inc., a regional baking company based in Auburn, Maine (see related story, beginning on Page 1.) The ratings remain at BBBand the outlook stable, S.&P. said. Flowers late last month agreed to acquire Lepage Bakeries for $370 million, including $300 million in cash at closing, $20 million in total deferred cash payments beginning on the fourth anniversary of the closing date, and common stock valued at $50 million. Flowers has said it will use a significant portion of the proceeds from its April 2012 issuance of $400 million senior unsecured notes due 2022 toward the acquisition, which it expects to complete in its fiscal second quarter. “Key credit factors in our ‘satisfactory’ business risk assessment include Flowers’ narrow product portfolio, leading market positions in the southern United States within the highly competitive fresh-baked goods industry, exposure to volatile commodity costs, moderate customer concentration, and geographic diversity within the U.S., yet a lack of international diversification,” S.&P. said. “The acquisition is intended to complement Flowers existing brands of breads, buns, and rolls. Lepage has three bakeries with available production capacity for Flowers’ expansion, especially of the Nature’s Own and Tastykake brands, in the

N.D. Mill & Elevator to add rail track
FARGO, N.D. — North Dakota Mill & Elevator said it will invest about $550,000 to replace 600 feet of rail track and install 450 feet of new rail track, giving the company the ability to store eight additional rail cars and aiding in its ability to ship bulk carloads of flour to customers. Vance Taylor, mill manager, said some of the rail track being replaced is more than a century old and replacing it is necessary to prevent derailments. The company also last month said it posted approximately $1.2 million in profits during January, February and March, down from about $6.2 million in the same period a year ago. Mr. Taylor said this year’s results reflected higher expenses for grain, freight and fuel during the three months. MBN

Dakota Specialty Milling buys CHP Blenders
FARGO, N.D. — Dakota Specialty Milling Co. has acquired CHP Blenders, a supplier and blender of dry food ingredients, from The expand our food ingredient blending opportunities and provide us with entry into sweet goods and concentrates for the first time,” said R.C. Axlund, president of Dakota Specialty Milling. “The acquisition of this well-respected company will be synergistic with our existing grain milling, blending and toasting operations. The central location in St. Louis is a plus as well.” Founded in 1969, Dakota Specialty Milling is a family-owned specialty grain miller and one of the largest suppliers of custom-milled and whole grain blends in North America. MBN

International Companies, Fenton , Mo. Financial terms of the transaction were not disclosed. “This acquisition will substantially
10 / June 12, 2012 Milling & Baking News

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Milling & Baking News - June 12, 2012

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