M&A; Activity Around The Globe: Gruma, Casa de Oro Foods, Hanpson Industries, Bridgeport Development Capital, GVK Power & Infra, Hanckock Prospecting
Friday, August 26, 2021 10:40 AM

As the US stocks trade mixed on Friday as Federal Reserve Chairman Ben Bernanke spoke about the economy, saying the central bank has an array of tools if needed, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Mexico’s Gruma Acquires Nebraska Tortilla Maker for $20 Million

Mexican corn miller Gruma said that it has completed the acquisition of Casa de Oro Foods in Nebraska for $20 million, its largest acquisition this year. The tortilla maker is based in Omaha and makes flour tortillas as well as tortilla-based dinner kits, Gruma said. The deal will bolster Gruma's position in the U.S. Midwest and it will also help cut the company's transportation costs, according to a statement the company filed with the Mexican stock exchange. Gruma has been on an acquisition spree this year, buying Russian tortilla company SoIntse for $7 million and a tortilla maker in Albuquerque, New Mexico for $9.3 million. The company is looking to expand in Europe, the Middle East and the United States, Chief Executive Raul Pelaez told Reuters in an interview last month.

Hampson Industries to Sell 4 Units for $84 Million

British aero engineer Hampson Industries said on Friday it planned to sell four of its businesses in the United States and UK to investment firm Bridgeport Development Capital for $84 million to reduce debt. Hampson, a supplier of tools and components to aeroplane makers Airbus and Boeing, also said it expected these initiatives, including cost cuts, to help improve its results over the medium term. The four businesses being sold are within its aerospace components and structures division and comprise Lamsco West, Bolsan Company, Attewell Ltd and the business of Pillar Seals and Gaskets, carried on by Attewell. These businesses make components in solid or laminated peelable form out of materials like metal or plastic -- known as shim components -- and are supplied to the commercial and military aerospace markets. "The shims businesses were non-core and represented an attractive disposal candidate in order both to maximise value for shareholders and to generate sufficient proceeds to achieve a material reduction in the group's net borrowings," Hampson said in a statement.

India’s GVK to Buy Australian Coal Mines for $2.2 Billion: Report

India-based, GVK Power & Infra said Friday, that it has agreed to buy two Australian coal mines owned by Hancock Prospecting, said two sources with knowledge of the deal, which a newspaper report said has been agreed for $2.2 billion. The GVK board, which constructs power plants and airports, will meet within 10 days to approve the deal, the Economic Times reported on Friday, citing lenders and company officials who are part of the negotiations. GVK Power Chief Financial Officer Issac George declined to comment on the report, when reached by Reuters. Hancock was not immediately available for comment. Hancock and GVK Power last month extended the deadline for exclusive talks until end August. Standard Chartered, ICICI Bank and Axis Bank will fund the GVK transaction, the report said, adding Ernst & Young was advising the Indian company.