Aussie ingredients expand in South America

- Last updated on GMT

Related tags: Brazil, South america, Burns philp

Australian bakery ingredients company Burns Philp announced its
intentions to expand in the emerging Latin American market with the
acquisition of US Kraft Foods yeast and industrial bakery
ingredients business in Latin America.

Australian bakery ingredients company Burns Philp has announced its intentions to expand in the emerging Latin American market with the acquisition of US Kraft Foods yeast and industrial bakery ingredients business in Latin America. The move confirms rumours dating from the beginning of 2002.

In a statement on Monday the Burns Philp​ board said that it had entered into a preliminary agreement with Kraft to acquire its ingredients business for US$110 million (€111.4m). The board expects the deal, first detailed in August, to be completed by the end of November.

The business, which operates under the Fleischmann's name, has its main operations inBrazil, Colombia, Ecuador, Venezuela and Peru - with five production facilities in the region.

Burns Philp stressed that the Fleischmann's brand name enjoys a well-established position in both theretail and industrial yeast categories, and is a market leader in Latin America's largest markets including Brazil, Colombia and Peru.

Earlier this year the Australian ingredients company, that has recently witnessed a significant boost in net profit, had confirmed its desire to buy Fleischmann's South American bakery ingredients business stating that if the business "became available for sale, it would be interested in investigating an acquisition".

Related topics: Market Trends

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