Bunge divests North American corn milling assets to Grain Craft

Bunge Global has entered into agreements to sell its North America dry corn and corn masa milling businesses to Grain Craft, one of the largest independent flour millers in the U.S. The deal includes seven facilities across Illinois, Indiana, Nebraska, Iowa, Texas, Kansas, and Mexico.

This sale reflects Bunge’s decision to streamline its operations and refocus on areas more aligned with its global value chains. “We carefully considered how this regional business fits with our long-term plans and chose to focus on other areas of our core business,” said Julio Garros, Co-President of Agribusiness at Bunge. He thanked the milling team for their contributions to operational efficiency and product quality.

Grain Craft, headquartered in Chattanooga, Tennessee, operates 13 mills and produces a variety of wheat flours. The company will gain 600 employees through the acquisition. The deal will also expand Grain Craft’s product portfolio into corn masa and dry corn milling.

Pete Frederick, CEO of Grain Craft, noted, “This acquisition expands our product offerings and enhances our ability to serve customers with a broader range of food ingredients.”

The financial terms were not disclosed. The deal is subject to regulatory approval and customary closing conditions.

Bunge’s move is part of a broader strategy to divest non-core businesses. Earlier this year, it announced the sale of its European margarine and spreads operations to Vandemoortele. The company is also progressing with its merger plans with Viterra, which is expected to strengthen its global agriculture network.

In the fourth quarter of 2024, Bunge’s agribusiness segment sales fell 9.5% year-over-year to $9.8 billion. Adjusted operating profit for processing operations dropped 59% to $241 million, driven by weaker results in North America and South America, partly offset by gains in Asia.

Bunge’s stock has fallen 25.5% over the past year, compared with an 11.5% decline in the agricultural sector.