Bunge to Acquire Edible Oils and Fats Business of Amrit Banaspati in India
MUMBAI and NOIDA, India, Dec. 21, 2011 /PRNewswire/ -- Bunge India Private Limited, a wholly owned subsidiary of Bunge Limited (NYSE: BG) ("Bunge India") and Amrit Banaspati Company Limited ("Amrit Banaspati") today announced that Bunge India has entered into definitive agreements with Amrit Banaspati and Amrit Corp. Limited ("Amrit Corp") to acquire the edible oils and fats business of Amrit Banaspati.
The acquisition includes Amrit Banaspati's manufacturing facility at Rajpura in the state of Punjab, rights to its brands and trademarks, its sales and distribution business and the transfer of employees pertaining to its edible oils and fats business to Bunge India. Bunge India would also acquire rights to GAGAN, the vanaspati brand held by Amrit Corp which is currently licensed to Amrit Banaspati.
The transaction, which is subject to approval by shareholders of Amrit Banaspati and Amrit Corp, has been unanimously approved and recommended by the Boards of Directors of both companies. The transaction is also subject to regulatory approvals and other customary closing conditions.
Christopher White, CEO, Bunge Asia, said, "This acquisition underscores Bunge's long-term commitment to growing our consumer food business in India. It enables us to expand our distribution reach, manufacturing base and brand portfolio to serve a growing customer base."
Adhiraj Sarin, Managing Director, Bunge India, added, "AMRIT, GAGAN and GINNI are trusted names associated with preparing tasty food, and we intend to build on their strong brand heritage. These brands, coupled with capable employees and a strong distribution network, open up opportunities for synergistic collaboration with Bunge India, creating incremental value for the combined operations. The addition of this business, along with our commitment to quality, food safety, innovation, risk management and efficiency through our global supply chain, will position Bunge well to be a long-term industry leader."
N. K. Bajaj, Chairman and Managing Director, Amrit Banaspati, said, "The Board of Directors has approved Bunge's offer and will also recommend an appropriate dividend to shareholders from proceeds of the sale. Bunge is a respected name in both the Indian and global markets. It is known for its high quality products, and I'm very happy that the products and brands of our company, which have gained a reputation for quality and service over the past decades, will continue to serve our valued consumers in the capable hands of Bunge. Subsequent to the transaction, Amrit Banaspati will continue to operate a commodities trading division and will explore venturing into real estate and other promising business opportunities."
About Bunge India Private Limited
Bunge India Private Limited, a wholly owned subsidiary of Bunge Limited (NYSE: BG), originates, refines and markets a wide range of edible oils and fats to serve the needs of food manufacturers, food service companies and consumers across India. Its consumer brands in India are DALDA, MASTERLINE and CHAMBAL.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company with approximately 32,000 employees in more than 30 countries. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat and corn to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.
About Amrit Banaspati Company Limited
Amrit Banaspati, listed on the Bombay stock exchange, is a leading North India-based edible oils and fats company with a storied history spanning seven decades. Its manufacturing plant in the state of Punjab includes equipment and facilities for refining crude edible oils, palm oil fractionation, hydrogenation, margarine production and packaging. Its portfolio of brands in bakery fats, vanaspati and refined oils includes AMRIT, BANSARI, GINNI, MERRIGOLD and SUNEHRI TEER, among others. It also manufactures the popular brand of GAGAN vanaspati under license from its associate company Amrit Corp Limited.
About Amrit Corp. Limited
Amrit Corp, listed on the Bombay stock exchange, is the flagship company of the Amrit Group and was established in 1940. Its present businesses consist of a dairy milk business that is engaged in the food service sector with a unique set of UHT milk products, and a real estate division. It is also the owner of the brand GAGAN, which it has licensed to Amrit Banaspati Company Limited.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
SOURCE Bunge Limited