Downer & Company Completes Sale of Bunge Foods' Bakery Division to Dawn Food Products, Inc., for $76 Million
BOSTON, January 8, 2004- Downer & Company, LLC, an international investment banking firm specializing in middle-market corporate acquisitions and divestitures, announced that the company has advised Bunge Foods, a subsidiary of Bunge Limited (NYSE:BG), on the $76 million divestiture of its Bakery Division to Dawn Food Products, Inc. Downer & Company served as the sole financial advisor to Bunge Foods on this transaction which closed on December 31, 2003.
Bunge Foods’ Bakery Division is a leading producer of frozen fully baked products, frozen dough, frozen batter, mixes, syrups and toppings. It operates seven manufacturing facilities across the United States and serves several leading grocery chains and foodservice providers. Dawn Food Products, based in Jackson, Michigan, is one of the largest independently owned bakery manufacturers and distributors for the food industry worldwide.
“This transaction represents a win-win for Bunge Foods and Dawn,” observed Joseph Downing, Managing Director with Downer & Company. “By divesting its bakery business, Bunge Foods is free to concentrate its efforts on its worldwide leading edible oils business. For Dawn, the acquisition significantly expands its presence in the bakery market, the primary focus of this highly successful family-owned business.”
“We are also delighted to close another deal in the food industry, an area which the firm has particular expertise and a developing track record,” Mr. Downing continued. In 2003 alone, Downer & Company was hired for six mandates in the food or food ingredients industry, all of which have either closed or are currently ongoing.
“We are very pleased with this outcome and with the efforts of our transaction team,” stated Downer & Company Vice President, Paul Colone. “The deal was signed approximately two months after we went to market with the business. The remarkable speed in which we signed this deal is reflective of the efforts of the buyer and seller, as well as the hard work of their respective legal counsel,” concluded Mr. Colone. Bryan Cave LLP acted as legal advisor to Bunge Foods on this transaction while Barnes & Thornburg advised Dawn Food Products.
About Bunge Foods
Bunge Foods is a subsidiary of Bunge North America (www.bungenorthamerica.com), a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to a wide range of customers in the livestock, poultry, food processor, foodservice and bakery industries. With headquarters in St. Louis, Missouri, Bunge North America and its subsidiaries operate grain elevators, grain and oilseed processing plants, and edible oil refineries and packaging facilities in the U.S., Canada and Mexico.
About Downer & Company
Since its inception in 1975, Downer & Company, LLC, has gained distinction as a leading middle-market M&A firm focused on the execution of acquisition and divestiture mandates for international and domestic corporations and private equity firms. Downer & Company is headquartered in Boston, Massachusetts, and has offices in Paris, Dublin, Frankfurt and Sydney. Downer & Company was recently recognized as the top middle-market Investment Banking Firm of 2003 by The Mergers & Acquisitions Advisor. Downer & Company’s corporate headquarters are located at 211 Congress Street, Boston, MA 02110. For further information, visit www.downer.com.
Contact:
Joseph J. Downing, Jr., Managing Director
617.482.6200 jdowning@downer.com
Paul Colone, Vice President
617.482.6200 pcolone@downer.com
Patti Harrington, Marketing Director
617.482.6200 pharrington@downer.com
