Saputo Inc. to acquire the business of Murray Goulburn for US$ 1 billion
METRO to acquire The Jean Coutu Group for $4.5 billion
Agri-Business I Diary I Confectionery I Meat & Poultry I Food processing
Cooke Inc. to acquire Omega Protein Corp. for US$ 500 million
AfDB’s agricultural transformation strategy guarantees additional 513 tn food
BASF to buy seeds, herbicide businesses from Bayer for US$ 6.9 billion
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BASF has signed an agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses. Bayer intends to divest these assets in the context of its planned acquisition of Monsanto. The all-cash purchase price is €5.9 billion, subject to certain adjustments at closing. The assets to be acquired include Bayer’s global glufosinate-ammonium non-selective herbicide business, commercialized under the Liberty®, Basta® and Finale® brands, as well as its seed businesses for key row crops in select markets: canola hybrids in North America under the InVigor® brand using the LibertyLink® trait technology, oilseed rape mainly in European markets, cotton in the Americas and Europe as well as soybean in the Americas. The transaction also includes Bayer’s trait research and breeding capabilities for these crops and the LibertyLink® trait and trademark.
For the full year 2016, sales of the business to be purchased from Bayer amounted to around €1.3 billion and EBITDA to around €385 million. The transaction is subject to the closing of Bayer’s acquisition of Monsanto and approval by relevant authorities. It is expected to close in the first quarter of 2018.
The acquisition complements BASF’s crop protection business, strengthening the company’s herbicide portfolio and marking its entry into the seed business with proprietary assets in key agricultural markets. “Building on the competent new team members and the enhanced portfolio, we will offer farmers a greater choice of solutions addressing their needs for high-quality seeds, chemical and biological crop protection,” explained Saori Dubourg, Member of the Board of Executive Directors of BASF SE and responsible for the Agricultural Solutions segment. “Moreover, this transaction will create new opportunities for future growth and strengthen our global innovation potential.”
BASF to buy seeds, herbicide businesses from Bayer
for US$ 6.9 billion
Read full article on globalfdi.net
METRO to acquire The Jean Coutu Group for $4.5 billion
METRO INC. and The Jean Coutu Group (PJC) Inc. (the “Jean Coutu Group”) (TSX: PJC.A) announced that they have entered into a definitive combination agreement (the “Agreement”) pursuant to which METRO will acquire all of the outstanding Jean Coutu Group Class A subordinate voting shares (the “Class A Shares”) and all of the outstanding Jean Coutu Group Class B shares (the “Class B Shares” and collectively with the Class A Shares, the “Jean Coutu Group Shares”) for $24.50 per Jean Coutu Group Share, representing a total consideration of approximately $4.5 billion, subject to regulatory and Jean Coutu Group shareholder approvals (the “Transaction”).
Under the terms of the Transaction, Jean Coutu Group shareholders will receive an aggregate consideration which will consist of 75% in cash and 25% in METRO common shares. The price of $24.50 per Jean Coutu Group Share implies a premium of 15.4% to the volume weighted average price of the Class A subordinated voting shares of the Jean Coutu Group f or the 20 trading days ending August 21, 20 17 (the day prior to the execution of a non-binding letter of intent between METRO and the Jean Coutu Group).
“Bringing together our two highly-respected and longstanding Québec brands represents an exciting milestone in the history of the Jean Coutu Group”, said Mr. Jean Coutu, Chairman of the Jean Coutu Group. “I am confident that this combination will ensure the safeguard of our entrepreneurial vision and corporate values as well as the perennial strength of the brand and will enable us to pursue our growth plan.”
“We’re honored to become the steward of the iconic Jean Coutu Group brand and we intend to build on this exceptional legacy,” said Mr. Eric R. La Flèche, President and Chief Executive Officer of METRO. “This transaction is attractive and compelling from a financial and commercial perspective. It is a unique opportunity to bring together each company’s expertise to better serve the growing consumer demand for healthier choices, value and convenience. The Jean Coutu Group’s extensive retail network and state-of-the-art distribution center will provide us with increased scale and reach, operational efficiencies and enhanced growth potential. We look forward to having Jean Coutu Group shareholders become important METRO shareholders.”
Saputo Inc., announces that it has entered into an agreement to acquire the business of Murray Goulburn Co-Operative Co. Limited ("Murray Goulburn" or "MG"), based in Australia.
The purchase price for the transaction is CDN$1.29 billion (A$1.31 billion) on a debt-free basis and will be financed through a newly committed bank loan. The transaction, which is unanimously recommended by the Murray Goulburn Board of Directors in the absence of a superior proposal, is subject to the approval of MG shareholders and customary conditions (including foreign investment approval and clearance by the Australian Competition and Consumer Commission) and subject to an Independent Expert concluding that the transaction is in the best interest of MG shareholders. The transaction is expected to close in the first half of calendar year 2018.
MG produces a full range of high-quality dairy foods, including drinking milk, milk powder, cheese, butter and dairy beverages, as well as a range of ingredient and nutritional products, such as infant formula. MG supplies the retail and foodservice industries globally with its flagship Devondale, Liddells and Murray Goulburn Ingredients brands. Murray Goulburn has approximately 2,300 employees and operates eleven manufacturing facilities across Australia and China.
For the twelve-month period ended on June 30, 2017, MG had revenues of approximately CDN$2.5 billion (A$2.5 billion) and earnings before interest, taxes, depreciation, amortization, milk supply support package forgiveness, rationalisation costs, write-downs and non-recurring costs ("adjusted EBITDA") of approximately CDN$78 million (A$79 million).
The acquisition of Murray Goulburn will add to and complement the activities of Saputo's Dairy Division (Australia). By acquiring a well-established industry player, the Company reinforces its commitment to strengthen its presence in the Australian market. Saputo intends to continue to invest in its Australian platform and contribute to the ongoing development of its domestic and international business.
Grupo Lala concludes acquisition of
Grupo Lala, S.A.B. de C.V., is pleased to announce that it has completed the acquisition of 99.9% of the shares of the Brazilian dairy company Vigor Alimentos, S.A. ("Vigor"), and the 50% of the shares of Itambé Alimentos, S.A. ("Itambé"), also a Brazilian dairy company, for an implied value of R$ 5,025 million.
Following the relevant event published on September 21st, the Cooperativa Central dos Produtores Rurais de Minas Gerais Ltda ("CCPR") is expected to exercise its right of first refusal to acquire 50% of the remaining Itambé shares, belonging to Vigor, so the net implied value of the Transaction would be R$ 4,325 million.
The Transaction was financed with a bridge loan for $25,229 million pesos with the banks JP Morgan, BBVA Bancomer and Santander; the refinancing of the bridge loan will be through long-term debt and possible bond issue.
Founded in 1917, Vigor has a consolidated infrastructure of over 3,900 employees, 3 milk collection centers, 9 production facilities and 19 distribution centers reaching 47,000 points of sale, with a strong presence in the states of Sao Paulo, Minas Gerais and Rio de Janeiro.
SUPERVALU INC., and Associated Grocers of Florida, Inc. announced that they have entered into a definitive merger agreement for SUPERVALU to acquire Associated Grocers in a transaction valued at approximately $180 million.
This transaction provides
SUPERVALU with the ability to expand its operations into a new part of Florida as well as provides new opportunities to bring SUPERVALU's products and services to Associated Grocers' diverse customer base in South Florida, the Caribbean, and other international markets. Additionally, as part of the pending transaction, SUPERVALU has reached a long-term supply agreement with Associated Grocers' largest customer that will go into effect upon the closing of the transaction.
"Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region," said Mark Gross, SUPERVALU's President and Chief Executive Officer. "We believe SUPERVALU is uniquely positioned to be the supplier of choice across the grocery industry and this acquisition is another example of how we're delivering on our growth strategy."
Gross continued, "Christopher Miller and his talented team have done outstanding work to build and support a dynamic and diverse retailer base. We're looking forward to welcoming the strengths and talents of the Associated Grocers team to SUPERVALU and working together so that, once the transaction is complete, we can bring the benefits of our combined scale and expertise to their customers to help them better compete in the evolving grocery industry."
SUPERVALU to Acquire Associated Grocers of Florida
Conagra Brands, Inc., announced that it has completed the acquisition of Angie's Artisan Treats, LLC, the maker of Angie's BOOMCHICKAPOP ready-to-eat popcorn, from TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, for $250 million.
The Angie's BOOMCHICKAPOP brand was founded by husband and wife entrepreneurs Dan and Angie Bastian, who will continue to actively support the business as part of Conagra Brands. The brand features more than a dozen varieties of ready-to-eat popcorn and is available nationwide in natural food, grocery, club, drug and mass retail outlets. Angie's BOOMCHICKAPOP has a presence in the U.S., Canada, South Korea, Peru, the Caribbean and Mexico.
Conagra Brands completes acquisition of Angie's Artisan Treats, LLC
Through its wholly-owned subsidiary Idun Industri AS, Orkla Food Ingredients has signed an agreement to purchase 100% of the shares in Arne B. Corneliussen AS ("Arne B. Corneliussen"), a leading manufacturer and supplier to the Norwegian food industry.
The company's product portfolio consists of spices, marinades, flavourings, starter cultures and other functional ingredients, in addition to packaging solutions. Its customer market is Norwegian food manufacturers with the Norwegian meat industry as main segment.
Orkla Food Ingredients is the leading bakery ingredients player in the Nordic region, supplying products such as margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan and ice cream ingredients. In acquiring Arne B. Corneliussen, the business area will expand its product range and customer base in Norway.
"This acquisition gives us access to a new growth platform in the food industry. The purchase of Arne B. Corneliussen also offers potential for synergies with our existing ingredients operations in Norway, in the form of a more strategic focus on the out-of-home sector as well as savings in areas such as purchasing and distribution," says Pål Eikeland, Orkla EVP and CEO of Orkla Food Ingredients.
Arne B. Corneliussen, established in 1949, has been owned since 1995 by DAT-Schaub A/S, a subsidiary of Danish Crown.
"We have had nothing but good experiences during our period as owners of Arne B. Corneliussen, but the time has now come to concentrate our operations. We think that a Norwegian owner will be positive for the company, and we look forward to continuing the close collaboration between DAT-Schaub and Arne B. Corneliussen,"says Jan Roelsgaard, CEO of DAT-Schaub.
Orkla acquires Norwegian Ingredients Supplier Arne B. Corneliussen
McCain Foods (Canada) has officially opened its new $65M state-of-the-art potato specialty production line, expanding the company’s flagship potato processing facility in Florenceville-Bristol, New Brunswick.
The new 35,000 square foot McCain Foods potato specialty production line addition represents the largest capacity expansion investment in Canada in nearly 10 years. The investment is reflective of the continued growth of the North American frozen potato and potato specialty segments in both the retail and food service businesses.
“During our 60th year of business, investment in the Florenceville- Bristol facility is a testament to the importance the community holds as the birthplace of McCain Foods,” added DeLapp. “In addition to the more than 40 new jobs created, the construction build stimulated economic activity within the region, and an additional demand of 4,000 acres of potatoes is to be supplied to the facility by New Brunswick potato farmers.”
A strong, sustainable Canadian business Since the company was founded in 1957, McCain’s leadership in the Canadian frozen potato market segment across all retail, food service and quick service restaurants (QSR) channels is undisputed.
All of McCain’s potato products are made from 100% real potatoes grown on farms close to our facilities, which are spread across the country in New Brunswick, Manitoba, and Alberta.
McCain Foods expands its potato processing facility in, New Brunswick
The African Development Bank (AfDB) has developed a new initiative called the Technologies for African Agricultural Transformation (TAAT) initiative – a knowledge- and innovation-based response to the recognized need to scaling up proven technologies across Africa.
Already, 25 African countries have written letters to the AfDB confirming their interest and readiness to participate in TAAT, and help transform their agriculture.
It will support AfDB’s Feed Africa Strategy for the continent to eliminate the current massive importation of food and transform its economies by targeting agriculture as a major source of economic diversification and wealth, as well as a powerful engine for job creation.
The initiative will implement 655 carefully considered actions that should result in almost 513 million tons of additional food production and lift nearly 250 million Africans out of poverty by 2025.
TAAT will execute bold plans to contribute to a rapid agricultural transformation across Africa through raising agricultural productivity along eight Priority Intervention Areas (PIAs).
The commodities value chains to benefit from this initiative are rice, cassava, pearl millet, sorghum, groundnut, cowpea, livestock, maize, soya bean, yam, cocoa, coffee, cashew, oil palm, horticulture, beans, wheat and fish.
“TAAT was born out of this major consultation and brings together global players in agriculture, the Consultative Group on International Agricultural Research, the World Bank, the Food and Agriculture Organization of the United Nations, the International Fund for Agricultural Development, World Food Programme, Bill and Melinda Gates Foundation, Alliance for a Green Revolution in Africa, Rockefeller Foundation and national and regional agricultural research systems, ” said AfDB President, Akinwumi Adesina, at a TAAT side event at the 2017 World Food Prize in Des Moines, Iowa.
Adesina explained that TAAT would help break down decades of national boundary-focused seed release systems. Seed companies will have regional business investments, not just national ones, he said. “That will be revolutionary and will open up regional seed industries and markets.”
AfDB’s agricultural transformation strategy to guarantee 513 million tons of additional food production
Cooke Inc., a New Brunswick company and parent of Cooke Aquaculture Inc., and Omega Protein Corporation (“Omega Protein” or the “Company”), a nutritional product company and a leading integrated provider of specialty oils and specialty protein products, announced that they have entered into a definitive agreement (the “Merger Agreement”) under which Cooke will acquire all outstanding shares of Omega Protein for $22.00 per share in cash. The Merger Agreement has been unanimously approved by the Board of Directors of each of Omega Protein and Cooke.
“We are very pleased to sign this agreement with Omega Protein,” said Glenn Cooke, CEO of Cooke Inc. “Omega Protein will provide us with another platform in Cooke’s growth strategy through further diversification in the supply side of the business. We believe this will be a very good fit between our two cultures. Omega Protein has a 100- year history with an experienced and dedicated workforce, which we value, and a tradition of operating in small, coastal towns and communities that we share. Their focus on sustainable aquaculture and agriculture and the production of healthy food is also a great fit with our experience and culture.”
Cooke carries on the business of finfish aquaculture globally through its wholly-owned subsidiary Cooke Aquaculture Inc. The New Brunswick, Canada based Cooke family also has significant investments in wild fisheries globally through their ownership of Cooke Seafood USA, Inc. and Icicle Seafoods, Inc. Cooke Aquaculture Inc. is an aquaculture corporation founded in Blacks Harbour, New Brunswick, Canada with salmon farming operations in Atlantic Canada (operated by its affiliate, Kelly Cove Salmon Ltd.), the United States (Maine and Washington), Chile and Scotland, as well as seabass and seabream farming operations in Spain. In 2015, Cooke Seafood USA, Inc. was created, and grew rapidly through the acquisitions of Wanchese Fish Company, Inc. in the USA and the assets of Fripur S.A., the largest fishing company in Uruguay. The Cooke family also acquired Icicle Seafoods, Inc. in 2016. The addition of Omega Protein serves as a perfect strategic piece for the Cooke family of companies.
Frey Farms, commercial grower and shipper of fresh produce throughout the Midwest and Southeast, announced the opening of a cold-pressed processing center on one of their farms located in Poseyville, Indiana. The new 70,000 square-foot facility was designed to produce large batch quantities of cold-pressed juice and puree ingredients.
The new facility will add a number of jobs to the Southern Indiana region. Frey Farms is a producer of fresh fruits and vegetables including watermelon, cantaloupe, sweet corn, hard squash, peppers and pumpkins. The Poseyville juicery will now be the company's central location for processing 6,000 gallons of cold-pressed, unpasteurized watermelon juice per day. The company anticipates more than 300 tons of Frey Farms watermelons coming through the facility each week during the season to expand the opportunities in the foodservice industry.
Each watermelon undergoes a proprietary process that uses minimal processing techniques to cold extract the juice and chill it to near freezing within minutes. This innovative process helps to maintain superior flavor while retaining its natural color, as well as nutrients. Frey Farms is now applying a successful and effective vertical integration. The Poseyville facility completes all stages of production in-house.
Frey Farms opens Fruit and Vegetable processing facility
Hilton to expand packing capability to New Zealand
Hilton Food Group plc (“Hilton”), the leading specialist international meat packing business, is pleased to announce it is to proceed with plans to expand its packing capability to New Zealand.
Hilton will construct a new meat processing facility in Auckland and supply Progressive Enterprises Ltd (“Progressive”), New Zealand’s leading retailer, trading as Countdown Supermarkets. As Progressive Enterprises LTD is also part of the Woolworths Ltd this development further strengthens Hilton’s existing relationship with Woolworths Ltd.
The development will take place as an extension of the existing site, and is subject to government approvals and the negotiation and finalisation of construction and tenure agreements. It is proposed that Hilton’s newly formed subsidiary, Hilton Foods New Zealand, will finance the new food packing facility, with commencement of production targeted for 2020. The new facility will be capable of supplying Progressive stores in New Zealand with a range of beef, lamb, pork, chicken and addedvalue products. It is expected that Hilton’s investment in plant and equipment will be approximately NZ $ 54 m.
Lamb Weston Opens Expanded Operations in Washington for $200m
Lamb Weston Holdings, Inc., joined with community and civic leaders to celebrate the completed expansion of its operations in Richland, WA. The $200 million investment announced in 2016 adds a new processing line to the existing facility, increasing the company’s processing capacity for making frozen french fries. The expansion adds approximately 150 jobs to the local economy.
During a special grand opening ceremony, Lamb Weston President and CEO Tom Werner was joined by Washington State Sen. Sharon Brown of Richland, President & CEO of the Tri-Cities Economic Development Council (TRIDEC) Carl Adrian, and Lamb Weston Richland employees to commemorate the occasion.
“This expansion allows us to build on our presence here in Richland, WA while increasing our capabilities so we can grow with our customers around the globe,” said Tom Werner, President and CEO of Lamb Weston. “We’re proud to be a part of the community in the Tri-Cities, and we’re especially grateful to our community partners who worked with us to make this expansion a reality.”
The 290,000 square foot, state-of-the-art expansion adds a new processing line to the company’s existing facility, increasing production capacity by approximately 300 million pounds annually. More than 600 employees at both the existing facility and expansion will make 600 million pounds of frozen french fries annually.
Neovia S.A.S. to acquire Epicore BioNetworks Inc.
Epicore BioNetworks Inc., and Neovia S.A.S. ("Neovia") jointly announced that Epicore and Neovia have entered into an arrangement agreement Arrangement pursuant to which Neovia will acquire all of the issued and outstanding shares of Epicore on a fully-diluted basis for a price per share of Cdn$1.30, valuing Epicore at approximately Cdn$ 35.6million.
The purchase price represents a premium to the closing trading price of the Epicore shares prior to this announcement of 25%. The proposed transaction will be carried out by Plan of Arrangement under the Business Corporations Act (Alberta) and is subject to various customary conditions, including approval by Epicore shareholders holding a minimum of 66⅔% of the Epicore common shares voted in person or by proxy at a meeting of the Epicore shareholders to be held on or about December 13, 2017.
The Board of Directors of Epicore, after receipt of a fairness opinion from Crow Mackay, have unanimously approved the entering into of the Arrangement Agreement and will unanimously recommend that Epicore shareholders vote in favor of the transaction. In addition, the terms of the Arrangement Agreement were negotiated and agreed to on behalf of Epicore by an independent committee of its Board of Directors. If the proposed transaction is completed, the shares of Epicore will be delisted from the TSX Venture Exchange.
The acquisition of Epicore provides Neovia with a probiotic manufacturing and technical organization. It also strengthens Neovia's presence in Latin America. It is anticipated that there will be positive synergies that will be gained by the combination of the two companies. These areas include R&D, global reach and marketing and expansion of Epicore technologies into new markets and species.
Capol GmbH acquires ColarÃ´me Inc.
Capol GmbH, a Business Unit of Freudenberg Chemical Specialities, SE & Co. KG (FCS), announced to acquire ColarÃ´me Inc., Saint Hubert, Canada with immediate effect. Capol expects to benefit from future important synergies both for product innovation and market penetration. As part of the acquisition Capol obtains a new production plant in North America which will further strengthen the business in this region and abroad.
Both Capol and ColarÃ´me have deep expert knowledge in special applications of the food industry, particularly in the confectionery market. The Capol portfolio serves all applications of the confectionery industry requiring surface treatment, e.g. anti-sticking agents for gums and jellies, glazes and polishing agents for sugar dragÃ©es or chocolate-coated centers. ColarÃ´me, based in St. Hubert in the greater Montreal region, was founded in 1998. The company holds patents on a production technology for a unique line of natural pigments allowing to create innovative coating products for food applications. The company offers flavor formulations and natural color pigments as well as natural vanilla extracts. ColarÃ´me currently employs 17 people. The acquisition builds the foundation to further expand the global Capol business.
L Catterton, the largest and most global consumer-focused private equity firm in the world, announced that it has acquired Uncle Julio’s, a leading polished casual Mexican restaurant. Terms of the transaction were not disclosed.
Founded in 1986 in Dallas, Texas, Uncle Julio’s is an upscale Mexican concept known for its made-from-scratch menu, offering the highest-quality Mexican food and fresh, handcrafted margaritas. Uncle Julio’s offers a unique and authentic dining experience built around original recipes served in a warm, welcoming atmosphere. Uncle Julio’s has a history of high average unit volumes (AUVs) and consistent performance across the U.S. and, with the support of L Catterton, plans to open new units in both existing and new markets.
"We are impressed by L Catterton’s unparalleled experience growing leading restaurant brands and deep understanding of consumer food and beverage trends and are excited to partner with their dedicated team," said Tom Vogel, President and Chief Executive Officer of Uncle Julio’s. "L Catterton appreciates our commitment to providing our guests with high-quality, made-from-scratch Mexican food and exceptional customer service. Ultimately, L Catterton’s willingness to invest in the long-term success of our brand and their alignment with our values makes them the perfect fit to help us execute our growth strategy.”
"Uncle Julio’s is a unique and authentic upscale dining experience with an on-trend brand and broad consumer appeal," said Andrew C. Taub, a Managing Partner in L Catterton's Buyout Fund. “Uncle Julio’s is a leader in the growing polished casual Mexican restaurant space, and its differentiated concept resonates across a variety of occasions and demographics. We are delighted to partner with Tom and the company’s talented management team to accelerate their expansion.”
L Catterton acquires
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LT Foods, a global Indian Food brand with presence in more than 65 countries, announced the launch of premium rice based snacks brand “Kari Kari” in India. In the launch phase LT Foods in partnership with Kameda Seika, “Kari Kari” will be available in Delhi-NCR, Mumbai and Bengaluru in exclusive tie-up with modern trade and premium stores. The Company will invest around USD 5 million in the launch phase and plan to expand its presence across India in coming months. LT Foods is aiming to generate revenue of USD 15 million over next 5 years from “Kari Kari” brand.
With this launch, LT Foods will enter the premium healthy snacks market which is growing at exponential rate with rice based baked snacks that have an international flavor customized for the Indian palate. The products will be available in four flavors including Spice Mania, Salt & Pepper, Wasabi and Chili Garlic. “Kari Kari” snacks will be exclusively available across three cities in packs of 70 and 150 grams with a pricing of Rs. 50 and Rs. 99 respectively. LT foods will roll out a 360 degree communication campaign which will include digital marketing campaigns, in-store promotions and interactive in-store POS material.
Kameda Seika, Japanese snacks major in JV with LT Foods are planning to manufacture “Kari Kari in Haryana. India is only the 5th country outside Japan after US, China, Thailand and Vietnam where Kameda Seika has invested looking at the growing demand for healthy snacks in specialty premium segment.
Commenting on the development, Ashwani Arora, Managing Director and CEO, LT Foods said,“Growing urbanization, rising disposable incomes, growing working class and increasing health consciousness is creating greater demand for innovative value-added products. The launch of “Kari Kari” brand is our response to customers looking for healthy premium snacking.”
Adding further, Ashwani said ”LT Foods is steadily focusing on creating a vibrant portfolio which already includes several leading brands such as Daawat, Royal, Ecolife, Devaaya, and many more.”
LT Foods & Kameda Seika to launch premium snacks brand “Kari Kari” in India
Nestlé Purina to invest $320 million in new U.S. pet food factory in Georgia
Georgia Gov. Nathan Deal announced that Nestlé Purina PetCare Co. will create as many as 240 new jobs and invest $320 million in a manufacturing facility and distribution center in Hartwell
"Our business-friendly climate, highly-skilled workforce and unmatched logistics infrastructure continue to attract industry-leading manufacturers like Purina to Georgia," said Deal. "With this new facility, Purina will build upon Georgia's strategic resources while yielding economic benefits for the Hart County community. We appreciate Purina's significant investment and look forward to the company's success here."
Purina, a global leader in pet care, currently employs more than 8,000 individuals in the U.S. Leading Purina brands include Purina ONE, Dog Chow, Friskies, Tidy Cats and Pro Plan.
"The Hartwell site will be an excellent location for Purina's first new U.S. factory in 20 years," said John Bear, vice president of manufacturing, Nestlé Purina. "We're very excited and look forward to closing on the property and bringing more quality jobs to the state of Georgia, as well as expanding Purina capacity and distribution in the Southeast."
Purina plans to create as many as 240 jobs over the next five years at the new location. The company will invest $320 million at the site by the end of 2023 and expects to close on the property later this year, contingent on completion of due diligence and satisfaction of closing conditions.
Distribution center operations are expected to begin in 2018, with production to follow in 2019.
"The Hart County Board of Commissioners is pleased that Nestlé Purina PetCare has chosen our community to expand their manufacturing operations," said Joey Dorsey, chairman of the Hart County Board of Commissioners. "We see the company's decision in selecting Hart County as reinforcement of our long-term vision and actions in supporting industry, agriculture, tourism, and the community's continuing emphasis on workforce development."
Georgia Department of Economic Development (GDEcD) Senior Project Manager Joshua Stephens represented the Global Commerce division throughout the project in collaboration with the Hart County Industrial Development Authority and Georgia Power.
Unilever announced that it has signed an agreement to acquire Brazilian natural and organic food business Mãe Terra.
Mãe Terra is a fast-growing and well-loved brand in Brazil, providing health-conscious consumers with organic and nutritious food products since it was set up in 1979. The company’s vision is to democratise natural and organic food by taking care of people and planet. Mãe Terra operates in several categories with a portfolio that includes organic cereals, cookies, snacks and culinary products. The main Mãe Terra categories represent a Brazilian market worth more than €8 billion (Euromonitor).
Growing at over 30% per year, Mãe Terra has a strong brand equity and a clear purpose of making nutritious food accessible to all. This fits clearly with Unilever’s own sustainable nutrition strategy and its commitment to sustainable growth.
Globally, the healthy foods trend is gaining relevance fast. Brazil is the fifth largest market in the world for healthy food and beverages, with 79% of consumers regarding health and nutrition as priorities.
Fernando Fernandez, President of Unilever Brazil, said: “We are excited about this acquisition. Mãe Terra has a great following in Brazil and strengthens our food portfolio, allowing us to accelerate our expansion in the high-growth naturals and organic segment. With Unilever’s expertise and distribution channels, we can both grow and scale Mãe Terra, helping to realise its mission of bringing healthy and nutritious food to even more people. This is perfectly aligned to Unilever’s commitment to sustainable nutrition and to provide consumers with food that tastes good, does good and doesn't cost the Earth.”
Unilever to acquire Mãe Terra
Simmons Prepared Foods Announces New Chicken Operation in Arkansas
Simmons Prepared Foods, Inc. announced it will build a new chicken facility in Benton County between Decatur and Gentry.
The company plans to invest $300 million in the facility which is expected to create approximately 1,500 new jobs, bringing total employment at the operation to over 2,300 people by 2022. It will also create new contracts with local Arkansas farmers. The facility will produce fresh and frozen chicken products for retail and restaurant customers with capacity to sell approximately 850 million pounds of poultry meat annually at full production. The company expects to begin new operations in 2019.
“We’re thrilled to bring this project to our community and are grateful for the cooperation from the Cities of Decatur and Gentry, local officials, Arkansas Economic Development Commission and the State of Arkansas,” said Todd Simmons, CEO of Simmons Foods, Inc. and Affiliates. “This project positions us to continue meeting our customers’ needs.”
The design will feature modern production facilities and contemporary office space supported with best-in-class environmental technologies. Simmons also plans to increase starting pay at production facilities later this year.
“Simmons Foods is a homegrown company that continues to invest heavily in Northwest Arkansas,” Hutchinson said.
“This announcement comes just two months after the company held a ribbon-cutting at its new pet food ingredient facility in Siloam Springs, which goes to show the faith they have in the area’s workforce and their commitment to the state. We competed with both Oklahoma and Missouri for this project, and I’m proud to say we won.”
County Judge Barry Moehring also joined today’s announcement.
IFC invests $76 m in Fullerton's masala bonds
IFC, a member of the World Bank Group, has invested $76 million (INR 5 billion) in 5-year unrated masala bond issuances of Fullerton India Credit Company Limited. The investment will strengthen their reach in underserved retail and micro, small, and medium enterprise segment in developing states.
Financing for micro, small and medium enterprise segment is a strategic focus of IFC’s financial inclusion work in India. IFC is using Masala Bonds to support companies in diversifying their funding sources. IFC helped create the Masala Bond market through its own first issuance in November 2014.
Fullerton India has established itself as a leading financial services company for MSME finance reaching 1.65 million retail and MSME customers in 22 states. Through this investment, the company expects to reach 6000 SME borrowers and 500,000 micro-enterprises in the next five years.
“We started focusing on MSME financing in rural and urban India in 2011. This now represents a significant portion of our lending” said Anand Natarajan, Head of Strategy and Business Execution, Fullerton India. “IFC’s earlier investment in 2015 helped us increase our support to MSME segment and strengthen our lending systems and processes. IFC’s renewed support strengthens our relationship and paves the way for steady and inclusion-led growth of the company’s MSME loan portfolio.”
Micro, small, and medium enterprises form a large part of the Indian economy, accounting for 45 percent of the country’s industrial output and 40 percent of its exports. There are 48.8 million Ministry of MSME, Annual Report, 2014 -15 MSMEs in India, which employ 111 million Ministry of MSME, Annual Report, 2014 -15 people. There is critical shortage of long-term funding. Per IFC–Government of Japan 2012 study on MSME financing in India, there is a total finance gap of $311.9 billion (~INR 20.9 trillion) against a total finance demand of $485.7 billion (~INR32.5 trillion).
Tetra Pak strengthens ice cream offering with acquisition of Big Drum
Tetra Pak has strengthened its product offering for ice cream manufacturers with the acquisition of Big Drum Engineering GmbH, a leading supplier of filling machines for the industry.
The deal further extends the company's ability to provide end-to-end solutions for food and beverage companies around the world, and reinforces its global leadership in the sector.
Tetra Pak already provides a full range of ice cream equipment, including raw material storage, mix preparation, continuous freezing and inclusion systems, as well as production solutions for moulded and extruded ice cream products. The acquisition of Big Drum will strengthen the company's presence in the "filled" ice cream segment (e.g. tubs and cones) which represent approximately half of the global packaged ice cream market.
Monica Gimre, Executive Vice President, Processing Systems at Tetra Pak said, "This acquisition means we can now provide an even more extensive range of production solutions for ice cream manufacturers and expand our collaboration with them. This, in turn, will allow us to deliver even greater value, by securing efficiencies in technical service across a number of different lines, and offering portfolio-wide support to their product development and marketing activities."
ADB Supports Disaster-Resilient Agriculture in Cambodia
The Asian Development Bank’s (ADB) Board of Directors has approved $50 million in additional financing to help boost agricultural productivity and improve smallholder farmers’ access to markets in 271 communes in Tonle Sap Basin, which is prone to natural calamities.
The Tonle Sap Poverty Reduction and Smallholder Development Project was originally approved in December 2009 with a total amount of $51.15 million. It has since supported community-driven development in rural roads and other infrastructure and improved agriculture and people’s livelihoods in 196 communes in five provinces, including Banteay Meanchey, Kampong Cham, Kampong Thom, Siem Reap, and Tboung Khmum. The additional support will add a disaster risk management element to the program and help expand it to cover 75 more communes in Kampong Thom and two new provinces, Battambang and Prey Veng.
“The additional financing will help the government further improve agriculture productivity, diversify Tonle Sap Basin’s economy to benefit smallholder farmers, and come up with development initiatives that reflect the needs of local communities,” said ADB Water Resources Specialist Thuy Trang Dang. “Communities with more climate-resilient infrastructure can bounce back more quickly from natural disasters.”
IFC, a member of the World Bank Group, is lending US $ 40 million to Companhia Brasileira de Fertilizantes (Cibra), one of the leading distributors of high quality fertilizer in Brazil.
The IFC loan will help finance the expansion of Cibra, using best practices in sustainable agriculture, and will also support the development of climate-smart agriculture in Brazil. Cibra's expansion plan of about US $ 80 million, part financed by IFC and part with its own resources, provides for investments in the improvement of its production units.
According to Santiago Franco, CEO of Cibra, "We are very happy and proud to partner with IFC. Given the high socio-environmental standards that IFC works with, its investment in Cibra is a recognition of the consistency of our expansion plan, our management capacity and our good socio-environmental practices. "
Second , Hector Gomez Ang , Country Head of IFC Brasil , "the sustainable improvement of rural productivity in Brazil, especially through the proper use of fertilizers, is essential to help feed the growing world in an environmentally responsible manner."
The agroindustry in Brazil faces the challenges imposed by an intensive production system and the poor quality of the topsoil. This makes it necessary to implement customized solutions for the fertilizers used, based on the needs of the soil and each crop. Proper fertilizer use, applying just what is needed wherever it is needed, reduces waste and increases productivity, helping to promote agricultural techniques that contribute to climate-smart agriculture. This will bring environmental benefits to the country, including indirect reduction of greenhouse gas emissions.
IFC lends US $ 40 million to develop climate-smart agriculture in Brazil
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