Ingredients / Operations / Supplier News

Cargill, CHS, ConAgra must sell 4 mills before merger

May 21, 2014
/ Print / Reprints /
/ Text Size+

A merger that includes the flour operations of two Minnesota companies, Cargill Inc., Minnetonka, and CHS Inc., Inver Grove Heights, will go forward after the U.S. Department of Justice mandates the sale of four mills because of antitrust concerns.The four mills, including one in New Prague, will be sold for $215 million to Bloomington-based Miller Milling Co., a subsidiary of Japanese flour giant Nisshin Seifun.

Cargill, CHS and Omaha, Neb.-based ConAgra Foods announced the merger in March 2013, combining flour operations into a powerhouse with 44 mills and more than $4 billion in sales. Cargill and CHS already pool flour operations in a joint venture called Horizon Milling.

The new joint venture reportedly will be the nation’s leading flour miller, combining, respectively, the current number one and number three players, Horizon and ConAgra. The merged company will be called Ardent Mills and based in Denver. It will have flour mills in Rush City, Mankato and Lake City, all Horizon locations, and Hastings, a ConAgra site.

The Ardent deal’s closing has been delayed by a federal antitrust review. On May 20, the Justice Department concurrently announced a civil suit and a settlement of that suit, pivoting on the sale of four of the 44 mills.

ConAgra will divest mills in Oakland, Calif.; Saginaw, Texas; and New Prague, while Horizon will sell its Los Angeles flour mill. Without the divestitures, the Justice Department said in a statement, hard wheat flour prices would be higher in northern and Southern California, northern Texas and the upper Midwest.

Source: StarTribune

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.



Image Galleries

2014 Bakery of the Year: Capistrano's Wholesale Bakery, Phoenix AZ

Here’s a look at Capistrano’s Bakery, our 2014 Bakery of the Year.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

National Pizza Month

October is National Pizza Month! Where do you go to grab a slice (or two) of your favorite pie?
View Results Poll Archive


Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Facebook IconTwitter IconYoutube IconLinkedIn Icon

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!