Nisshin Flour Milling to Acquire Miller Milling
Date Posted: February 29, 2012
Nisshin Seifun Group Inc. (President: Hiroshi Oeda) and its subsidiary, Nisshin Flour Milling Inc. (President: Akihisa Sasaki) have entered into an agreement February 27, 2012, to acquire all of the ownership interests in Miller Milling Company, located in Bloomington, Minnesota, the United States of America.
Nisshin Seifun Group Inc. (“NSGI”) has long had the expansion of its overseas business as a top priority in order to sustain the continued growth of the Group.
Through the Acquisition, NSGI decided to launch the Group into the U.S. flour milling market, the largest flour milling market in the developed world.
Miller Milling Company, which is ranked 9th largest miller in the U.S. according to Grain & Milling Annual 2011, owns two durum/hard wheat milling facilities strategically located in areas close to large flour/semolina consumption regions in the Eastern and Western United States.
The acquisition of Miller Milling Company will enable NSGI to take advantage of the highly experienced and technical capabilities of Miller Milling that operates its core business centered on durum semolina, bakery flour and tortilla flour products.
NSGI plans to further expand its presence in the U.S. by expanding Miller Milling Company’s existing operations as a part of the Group organization into new markets.
Towards that goal, NSGI will utilize the Group’s outstanding product development, techniques and capabilities to supply wheat flour that is consistent in quality.
The acquisition of Miller Milling is not NSGI’s first foray into the North American market; the Group had already entered the North American market in the form of its subsidiary, Rogers Foods Ltd., a wheat-flour and prepared mix manufacturer in British Columbia, Canada.
NSGI is confident that its acquisition of Miller Milling Company will realize synergies both with Rogers Foods and the other Group companies that will serve to greatly accelerate the expansion of its presence in the U.S. market.
In addition to the expansion of its business presence in North America, NSGI is excited about the opportunity for the Group to gain valuable wheat-related know-how from its new operations in the U.S. market, which is the largest supplier of wheat to Japan, and substantial experience in the U.S. wheat and wheat-flour business under free trade.
Through this experience, the Group will obtain significant benefits and capabilities for further expanding its flour milling operations in the global market.
In order to execute the acquisition, NSGI will newly incorporate a subsidiary in the U.S. that will acquire all of the ownership interests in Miller Milling Company.
The ownership ratios of NSGI and NFMI in the new U.S. subsidiary will be 20% and 80% respectively.
The closing is scheduled for the end of March 2012.
John C. Miller, President and CEO of Miller Milling Company, explained why the NSGI/NFMI transaction is attractive to Miller Milling’s owners as the following: “We have been trying for some time to put in place a plan that prepares Miller Milling for future growth and success.
"My partners and I believe that combining Miller Milling with Nisshin Flour Milling is the best way to accomplish that.
"Our responsibilities to our shareholders, our customers and our employees lead us to conclude that the best path forward would be to take advantage of the many strengths a company like Nisshin can bring to our business while at the same time ensuring and even strengthening the competitive marketplace our customers’ currently enjoy.
"I know that Nisshin shares our belief that Miller Milling is well positioned for growth and expansion.
"And I am especially pleased Nisshin will rely on current Miller Milling management and employees to take Miller Milling to the next level.
"Our acquisition by Nisshin is positive in many ways for Miller Milling’s shareholders, customers and employees.”
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