Raisio plc, Stock exchange release, 14 May 2009 at 8 am Finnish time
BUNGE TO ACQUIRE RAISIO'S MARGARINE BUSINESS
Bunge and Raisio have signed an agreement on the sale of Raisio's
margarine
business to Bunge. Bunge Limited is a global company that
specialises in foods,
the processing and sale of agricultural commodities, as
well as fertilizers. The
value of the transaction is EUR 80 million. The
transaction will also make Bunge
a new and significant Benecol partner for
Raisio.
The transaction will require the
approval of the competition authorities. The
duration of authority
processing will determine the timing of the transaction,
which is currently
expected to take place in the third quarter. The buyer will
pay the
acquisition price in cash. After tax and expenses the sales profit from
the
divestment is expected to be some EUR 42 million. Raisio's equity ratio is
estimated to be about 72 per cent after the transaction.
Raisio's CEO Matti Rihko says: “The deal is an important step for Raisio
towards
focusing on grain-based business. The price is also very good. The
transaction
will bring Raisio a new, significant Benecol partner, who is
looking to develop
Benecol and functional foods. The divestment will bring
further clarity to
Raisio's focus: the company will concentrate on
grain-based products.”
Rihko adds: “The margarine business has
been put into good shape in the last two
years, making it a natural addition
to Bunge, which is looking to leverage its
position in the Central and
Northern European markets. As a global,
billion-dollar company,
Bunge has both the will and ability to develop the
margarine business
and to lead consolidation in a big sector. Raisio will
continue to sell
margarine products as Bunge's partner in Finland, Sweden and
Estonia. In
these countries Raisio's market position and net sales will remain
unchanged. In Poland, the transaction targets Raisio Polska Foods Sp. z o.o.;
Raisio will continue in grain-based snack business as a smaller, new
company.
The net sales of Raisio Polska Foods' in 2008 were EUR 49
million.”
The transaction encompasses the margarine plants in
Finland and Poland, as well
as several brands, the best known being Keiju,
Makuisa, Masmix and Pyszny Duet.
Bunge will also have a licensing agreement
concerning the Sunnuntai and
Carlshamn Mejeri brands. Around 330 of
Raisio's Finnish and Polish employees
will be transferring to Bunge. The
transaction doesn't effect on contract
cultivation of oil seeds in
Finland.
Bunge Limited
(www.Bunge.com, NYSE: BG) is a leading global agribusiness and
food
company founded in 1818 and headquartered in White Plains, New York.
Bunge's over 25,000 employees in over 30 countries enhance lives by improving
the global agribusiness and food production chain. The company supplies
fertilizers to farmers in South America, originates, transports and
processes
oilseeds, grains and other agricultural commodities worldwide,
produces food
products for commercial customers and consumers and supplies
raw materials and
services to the biofuels industry. The main product groups
in the Bunge's foods
division are margarines, bottled vegetable oils and
mayonnaise. The Group's
consolidated net sales in 2008 totalled USD 52.6
billion (EUR 39.6 billion). The
company has a strong market position in
bottled vegetable oils in Europe and
also in margarines in Poland and
Germany.
Raisio plc
Heidi Hirvonen
Communications Manager
tel. +358 50 567
3060
Further
information:
Matti
Rihko, CEO, Raisio plc, tel. +358 400 830 727
(assistant Teija Silomäki,
tel. +358 44 782 1272)
Henri Rieux, Vice President Corporate Affairs, Bunge Europe, tel. +41 22
592
9707
Raisio will hold a press event in English on 14th May 2009 at
11.30 a.m. Finnish
time at Hotel Scandic Simonkenttä in the Bulsa-Freda
meeting room. The address
is Simonkatu 9, Helsinki.
An event for analysts will be held on 14th May
2009 at 12.30 p.m. Finnish time
at Hotel Scandic Simonkenttä in the
Bulsa-Freda meeting room. The address is
Simonkatu 9, Helsinki.
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