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
About Downer & Company
Paul Colone, Vice President
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