Agribusiness Bunge North America has announced that its subsidiary, Bunge Foods, has executed a definitive agreement to sell its bakery business to Jackson, Michigan-based Dawn Food Products for US$76m.

The sale includes the assets that produce mixes, frozen dough, syrups and toppings. Bunge Foods will continue with its edible oil processing and packaging operations.
"Oil is a core business for Bunge both in North America and worldwide," said John E. Klein, president and CEO of Bunge North America. "Selling the bakery business will allow Bunge Foods to focus on our edible oil business."

Bunge's bakery mix related assets in Seattle, Washington, Bradley, Illinois, and Modesto, California are included in the sale as are its frozen bakery plants in Mexico, Missouri and Tustin and Modesto, California. The syrups and toppings plant in Seattle and the bakery research and development facilities in Seattle and St. Louis are also included in the sale.

"This acquisition will help Dawn grow in our service to the baking industry," said Ron Jones, CEO of Dawn Foods.

The sale is subject to regulatory approval and other customary closing conditions but is expected to close by year-end, Bunge said.

Bunge North America has also announced that its CEO is to retire at the end of the year. For more on that story, click here.