Bunge Agrees To Acquire Corn Products
Corn Products will become a Bunge subsidiary, with Corn Products CEO to join Bunge BOD, in a $4.8 billion all-stock deal.
June 23, 2008
Bunge Limited announced Monday that the agribusiness and food company will acquire Corn Products International, Inc. in an all-stock deal valued at approximately $4.8 billion, including about $414 million of Corn Products' debt.
According to the agreement, Corn Products will become a subsidiary of Bunge, and Sam Scott, chairman, president and chief executive officer of Corn Products, will join the board of directors of Bunge. The transaction is expected to close in the fourth quarter of 2008.
Bunge is looking to achieve several objectives through the acquisition, including strengthen the customer base; fill out the portfolio holdings in the sweeteners and starches market; and expand into growth geographies, according to a company release.
Alberto Weisser, Bunge Limited's chairman and chief executive officer, said in a statement, “Corn Products is the leading pure-play franchise in corn refining and will add higher-margin starch and sweetener products to Bunge's product portfolio, expand our operations in important growth markets, and diversify our revenue stream with a solid cash flow business."
Sam Scott of Corn Products said, "I am excited by this combination. It represents a terrific opportunity to create value for our stockholders, enhance opportunities for our employees and provide benefits to our global partners and customers. Our stockholders will have an ongoing equity interest in a combined company that is well-positioned to serve customers around the world with a broad product portfolio, integrated distribution network and innovative products."
Bunge used Credit Suisse Securities LLC and Morgan Stanley and Co. as financial advisors, and Shearman & Sterling LLP as legal advisor in the deal. Lazard is financial advisor, and Sidley Austin LLP is legal advisor to Corn Products. J.P. Morgan Securities Inc. also provided a fairness opinion to Corn Products’ board of directors.
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