This is legal?
ConAgra Foods, Cargill and CHS join flour operations
World-Grain.com, March 5, 2013
by World Grain Staff
OMAHA, NEBRASKA, U.S. — ConAgra Foods, Cargill and
CHS announced on March 5 a definitive agreement to
combine their North American flour milling businesses
to form Ardent Mills, a new flour milling company that
will serve customers in the baking and food industries.
Ardent Mills will bring together ConAgra Mills and
Horizon Milling, a Cargill-CHS joint venture formed in
2002.
Dan Dye, who currently serves as president of Horizon
Milling, will lead Ardent Mills as chief executive officer
once the new company is formed. Dye will be joined by
Bill Stoufer, current president of ConAgra Mills, as
Ardent Mills’ chief operating officer and chief
integration officer. The company’s operations and
services will be supported by 44 flour mills, three
bakery mix facilities and a specialty bakery, all located
in the U.S., Canada and Puerto Rico. The location of its
headquarters will be determined at a later date.
ConAgra Foods and Cargill will each own a 44% stake
in Ardent Mills, with CHS owning a 12% interest. All
three companies will have representatives on Ardent
Mills’ board of directors.
“We’re excited about this unprecedented step to
further our heritage in milling while creating long-term
value for ConAgra Foods’ shareholders,” said ConAgra
Foods Chief Executive Officer Gary Rodkin. “Ardent
Mills will set the new industry standard by addressing
the most important issues facing customers, such as
commodity price volatility, increasingly sophisticated
food safety requirements, the need for more cost-
effective supply chains and growing market demand
for more innovation in products and processes.”
“The future of flour milling is tied to serving the
innovation and supply chain management challenges
of food producers,” said Scott Portnoy, corporate vice-
president, Cargill. “This is what makes us excited
about Ardent Mills. It will have the knowledge and
experience to help customers develop foods that
appeal to consumers’ changing taste and texture
preferences, while also meeting their nutritional needs.
It also will have the assets and capabilities to help
customers improve the efficiency of their supply chains
and strengthen their commodity risk management.”
“As part of Ardent Mills, CHS farmer-owners will have
more opportunity to further connect the wheat they
produce to the consumer marketplace,” said Mark
Palmquist, executive vice-president and chief
operating officer, Ag Business, CHS. Palmquist added
that CHS, the nation’s leading producer-owned
cooperative, will be among the new company’s wheat
suppliers.
The new company will take advantage of the combined
assets, capabilities and experience of ConAgra Foods,
Cargill and CHS to bring innovative flour and grain
products, services and solutions to the marketplace,
the companies said.
Ardent Mills’ vision will be to help customers increase
their growth and profitability in an ever-changing
marketplace. Its products will be backed by an
extensive network of wheat sourcing capabilities and
flour milling and bakery mix facilities across North
America. The company will offer a unique set of
services, including product development resources,
technical and application support, supply chain
management and commodity price risk management.
Ardent Mills also will tap the market knowledge,
transportation logistics, consumer insights, food
ingredients and culinary expertise currently available
through ConAgra Foods, Cargill and CHS, the
companies said.
Suppliers, including the many farmers and
cooperatives that currently provide wheat to the
milling operations of ConAgra Mills and Horizon
Milling, are expected to benefit from the additional
sourcing opportunities provided by Ardent Mills’ asset
base, as well as from more opportunities to make
value-adding connections to consumers.
Ardent Mills will operate as an independent joint
venture of its three parent companies, Omaha,
Nebraska, U.S.-based ConAgra Foods, Minneapolis,
Minnesota, U.S.-based Cargill and St. Paul, Minnesota,
U.S.-based CHS.
ConAgra Foods, Cargill and CHS will contribute their
respective milling operations to Ardent Mills on a
cash-free, debt-free basis in exchange for the agreed
ownership interests. Sales for ConAgra Mills, currently
a part of ConAgra Foods’ Commercial Foods segment,
were approximately $1.8 billion in its fiscal year ended
May 27, 2012. Sales for Horizon Milling were
approximately $2.5 billion in its fiscal year ended May
31, 2012. The owners intend for Ardent Mills to be
self-financed through cash flow from operations and
its own bank debt and credit facility. The structure and
amount of Ardent Mills’ debt financing will be
determined during the pre-close period. The owners
intend to receive cash distributions from Ardent Mills
at closing. Initial estimates of the total proceeds to be
distributed range from $800 million to $1 billion.
The formation of Ardent Mills is expected to be
completed in late calendar year 2013, following
regulatory clearances, financing and the satisfaction of
customary closing conditions.
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ConAgra Foods, Cargill and CHS join flour operations
World-Grain.com, March 5, 2013
by World Grain Staff
OMAHA, NEBRASKA, U.S. — ConAgra Foods, Cargill and
CHS announced on March 5 a definitive agreement to
combine their North American flour milling businesses
to form Ardent Mills, a new flour milling company that
will serve customers in the baking and food industries.
Ardent Mills will bring together ConAgra Mills and
Horizon Milling, a Cargill-CHS joint venture formed in
2002.
Dan Dye, who currently serves as president of Horizon
Milling, will lead Ardent Mills as chief executive officer
once the new company is formed. Dye will be joined by
Bill Stoufer, current president of ConAgra Mills, as
Ardent Mills’ chief operating officer and chief
integration officer. The company’s operations and
services will be supported by 44 flour mills, three
bakery mix facilities and a specialty bakery, all located
in the U.S., Canada and Puerto Rico. The location of its
headquarters will be determined at a later date.
ConAgra Foods and Cargill will each own a 44% stake
in Ardent Mills, with CHS owning a 12% interest. All
three companies will have representatives on Ardent
Mills’ board of directors.
“We’re excited about this unprecedented step to
further our heritage in milling while creating long-term
value for ConAgra Foods’ shareholders,” said ConAgra
Foods Chief Executive Officer Gary Rodkin. “Ardent
Mills will set the new industry standard by addressing
the most important issues facing customers, such as
commodity price volatility, increasingly sophisticated
food safety requirements, the need for more cost-
effective supply chains and growing market demand
for more innovation in products and processes.”
“The future of flour milling is tied to serving the
innovation and supply chain management challenges
of food producers,” said Scott Portnoy, corporate vice-
president, Cargill. “This is what makes us excited
about Ardent Mills. It will have the knowledge and
experience to help customers develop foods that
appeal to consumers’ changing taste and texture
preferences, while also meeting their nutritional needs.
It also will have the assets and capabilities to help
customers improve the efficiency of their supply chains
and strengthen their commodity risk management.”
“As part of Ardent Mills, CHS farmer-owners will have
more opportunity to further connect the wheat they
produce to the consumer marketplace,” said Mark
Palmquist, executive vice-president and chief
operating officer, Ag Business, CHS. Palmquist added
that CHS, the nation’s leading producer-owned
cooperative, will be among the new company’s wheat
suppliers.
The new company will take advantage of the combined
assets, capabilities and experience of ConAgra Foods,
Cargill and CHS to bring innovative flour and grain
products, services and solutions to the marketplace,
the companies said.
Ardent Mills’ vision will be to help customers increase
their growth and profitability in an ever-changing
marketplace. Its products will be backed by an
extensive network of wheat sourcing capabilities and
flour milling and bakery mix facilities across North
America. The company will offer a unique set of
services, including product development resources,
technical and application support, supply chain
management and commodity price risk management.
Ardent Mills also will tap the market knowledge,
transportation logistics, consumer insights, food
ingredients and culinary expertise currently available
through ConAgra Foods, Cargill and CHS, the
companies said.
Suppliers, including the many farmers and
cooperatives that currently provide wheat to the
milling operations of ConAgra Mills and Horizon
Milling, are expected to benefit from the additional
sourcing opportunities provided by Ardent Mills’ asset
base, as well as from more opportunities to make
value-adding connections to consumers.
Ardent Mills will operate as an independent joint
venture of its three parent companies, Omaha,
Nebraska, U.S.-based ConAgra Foods, Minneapolis,
Minnesota, U.S.-based Cargill and St. Paul, Minnesota,
U.S.-based CHS.
ConAgra Foods, Cargill and CHS will contribute their
respective milling operations to Ardent Mills on a
cash-free, debt-free basis in exchange for the agreed
ownership interests. Sales for ConAgra Mills, currently
a part of ConAgra Foods’ Commercial Foods segment,
were approximately $1.8 billion in its fiscal year ended
May 27, 2012. Sales for Horizon Milling were
approximately $2.5 billion in its fiscal year ended May
31, 2012. The owners intend for Ardent Mills to be
self-financed through cash flow from operations and
its own bank debt and credit facility. The structure and
amount of Ardent Mills’ debt financing will be
determined during the pre-close period. The owners
intend to receive cash distributions from Ardent Mills
at closing. Initial estimates of the total proceeds to be
distributed range from $800 million to $1 billion.
The formation of Ardent Mills is expected to be
completed in late calendar year 2013, following
regulatory clearances, financing and the satisfaction of
customary closing conditions.
http://www.world-
grain.com/News/News%20Home/World%20Grain%20N
ews/2013/3/ConAgra%20Foods%20Cargill%20and%20
CHS%20join%20flour%20operations.aspx
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