A merger featuring ConAgra Foods Inc, Cargill and CHS Inc would culminate in the formation of a new company called Ardent Mills. The new company would have forty four flour mills, three bakery mix factories and a specialty bakery located in the US, Canada and Puerto Rico respectively.
The venture would have ConAgra and Cargill receiving 44% share while CHS would have 12%. The venture would serve companies with supply chains as well as new products and processes. Through the combined processing, the companies hoped to better manage price volatility and increase food safety. Individually, the three companies earned revenues near US$4.3 billion in sales. Each of the venture partners would contribute their milling operations to Ardent Mills on a cash free model for the agreed upon ownership stake.
Ardent Mills would be combining with Horizon Milling, the joint venture between Cargill and CHS formed back in 2002. Horizon is the top US milling company averaging 290,500 CWT while ConAgra is able to process 255, 100 CWT.
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