ConAgra Foods, Cargill and CHS say their new joint venture (JV) flour milling company, Ardent Mills, is expected to begin operations “on or about May 29, 2014”.
This announcement follows the conclusion of regulatory review by the US Department of Justice and the successful completion of all international regulatory clearances.
The transaction remains subject to financing and other certain customary closing conditions.
Announced in March 2013, Ardent Mills will bring together ConAgra Mills and Horizon Milling, a Cargill-CHS joint venture formed in 2002.
The new company will take advantage of the combined assets, capabilities and experience of the three organizations to bring innovative flour and grain products, services and solutions to the marketplace.
It will tap the market knowledge, transportation logistics, consumer insights, wheat sourcing capabilities, food ingredients and culinary expertise currently available through ConAgra Foods, Cargill and CHS.
Ardent Mills will operate as an independent JV.
ConAgra Foods and Cargill expect to complete the sale of four flour milling facilities prior to May 29, 2014 to Miller Milling Company, a US-based subsidiary of Tokyo-based Nisshin Flour Milling Inc.
Following the completion of the JV, Ardent Mills’ operations and services will be supported by 40 flour mills, three bakery mix facilities and a specialty bakery located the US, Canada and Puerto Rico.
Located in Denver, US, Ardent Mills will offer services such as product development resources, technical and application support, supply chain management and commodity price risk management.
In addition to its headquarters, Ardent Mills will operate satellite offices in Omaha, Neb., and Minneapolis, Minn.
ConAgra Foods and Cargill will each own a 44% stake in Ardent Mills, with CHS owning 12%.
All three companies will have representatives on Ardent Mills’ board of directors.
