Milling & Baking News - February 19, 2013 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 19, 2013 / Judge denies Bimbo motion to delay divestiture; deal to close shortly NEWS Former Sara Lee executive to lead AIB International Story on Page 11 LATE NEWS Berkshire-led group acquiring Heinz PITTSBURGH — An investment consortium including Berkshire Hathaway and 3G Capital has entered into a definitive merger agreement to acquire The H.J. Heinz Co. in a transaction valued at $28 billion, including the assumption of debt. The board of directors of Heinz has unanimously approved the agreement, and Heinz shareholders will receive $72.50 in cash for each share of common stock they own. The value represents a 20% premium to Heinz’s closing share price of $60.48 on Feb. 13, 2013, and a 19% premium to Heinz’s all-time high share price, according to the company. The acquisition represents Continued on Page 8 WASHINGTON — U.S. District Judge Emmet G. Sullivan on Feb. 13 denied a motion filed by Grupo Bimbo S.A.B. de C.V. in late January that would have temporarily suspended Flowers Foods, Inc.’s pending acquisition of the Sara Lee and Earthgrains brands in California from Grupo Bimbo The acquisition now will proceed as planned, with portions of the transaction scheduled to close by Feb. 23 and the entire closing expected to be finalized by the end of May. The transaction, which would give Flowers Foods perpetual, exclusive and royalty-free licenses to the Sara Lee and Earthgrains brands for sliced bread, buns and rolls in California, a business with annual sales of about $134 million, was approved by the U.S. Department of Justice in October 2012. The recent action to liquidate Hostess Brands, Inc.’s bread businesses — with a significant portion potentially going to Flowers — led Grupo Bimbo to file a motion in the U.S. District Court for the District of Columbia on Jan. 29 requesting a suspension of the transaction. “The competitive landscape of the United States bread industry has Continued on Page 14 Signature Interview In the eye of the storm: David B. Durkee Part 1: The B.C.T.G.M. president, background and philosophy W henever a change in leadership occurs at the helm of the nation’s largest bakery workers union, the baking industry takes note. Given that this succession occurred in the immediate aftermath of the most consequential labor dispute in baking history, interest is particularly intense. On Jan. 1, David B. Durkee became president of the Bakery, Confectionery, Tobacco and Grain Millers International Union. He succeeded Frank Hurt, who retired after heading the 80,000-member union for 20 years. Six weeks before the change of leadership, Hostess Brands, Inc., one of the largest baking companies in the United States, suspended operations and began winding down the business after the B.C.T.G.M. went on strike. Since that date, nearly all of the company’s 18,000 workers (most of whom were not members of the B.C.T.G.M.) have been out of work, hoping buyers will resume operations at some, perhaps, most of the plants. While Mr. Durkee acknowledged Continued on Page 31

Table of Contents for the Digital Edition of Milling & Baking News - February 19, 2013

Milling & Baking News - February 19, 2013
Judge denies Bimbo motion to delay divestiture; deal to close shortly
Late News - Berkshire-led group acquiring Heinz
Signature Interview - In the eye of the storm: David B. Durkee
Table of Contents
News/Comment - Naming of Biane at AIB source of genuine excitement for baking
Editorial - For new measure of business success
Late News
Nutrition and Health - Folic acid intake linked in study to reduced autism incidence
Alleging link to obesity, C.S.P.I. seeks sweetener limit in drinks
Industry Activities - Former Sara Lee executive to lead AIB International
CME Group to transition K.C.B.T. to Chicago July 1
Business - Judge gives Hostess go-ahead to auction snack cake brands
Hearthside to renovate and expand manufacturing facility in Indiana
Newly Weds selects Kentucky town for 13th U.S. manufacturing plant
Chicago Metallic acquires Lockwood Manufacturing
New products focus of year-long celebration at Snyder’s-Lance
Financial Results - Panera profit up 28% on higher prices and sales in fiscal 2012
The Andersons profit declines from record high in fiscal ‘11
Oilseeds processing profits boost ADM earnings in second quarter
With large write off, Bunge net income negligible in 2012
Flowers executives offer peek into Hostess shut down mayhem
Flowers Foods 2012 profits up; not ready to issue ‘13 guidance
Data - After this year, wheat supply-and-demand seen mostly flat through 2022-23
Signature Interview - In the eye of the storm: David B. Durkee
Regulatory Affairs - Hot stuff — ovens and boilers
People - Panera hires executive v.p., c.f.o.
J.D. Kice of Kice Industries dies at 71
Mile Hi unveils new hires, promotions
AB Mauri names v.p. of sales
Creative Food Consultants president dies
International - U.S. share in world wheat trade to decline over 10 years
F.A.O. Food Price Index flat in January, ending string of declines
Biofuel production rise continues, but at slower pace
Education and Research - Oregon State pioneers disease resistant soft white winter wheat
Ingredient Market Trends - China and Brazil stand out in U.S.D.A. soybean trade forecasts
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - February 19, 2013