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Ventura Foods, a joint venture of CHS Inc. and Mitsui & Co. (TYO: 8031; OTC: MITSY), agreed to acquire the Cargill DSM dressings, sauces and mayonnaise business from Cargill Inc. The transaction is expected to close in the second quarter of 2016. Terms were not disclosed. The move comes within three months after Ventura Foods acquired the sauces and condiments business of Canadian-based Wing’s Food, which became Ventura Foods Canada and now operates as a wholly-owned subsidiary. In February, Cargill also agreed to sell to a Dutch investment consortium its industrial chocolate production unit in Mannheim, Germany, which it had acquired last year from the Archer Daniels Midland Company (NYSE:ADM). Cargill DSM makes products such as mayonnaise, tartar sauce, flavored dressings, and sauces for national foodservice companies and distributors. The business operates from one standalone facility in Port St. Lucie, Florida, and two facilities integrated within the broader operations of Cargill’s Fats & Oils Group in Gainesville, Georgia and Sidney, Ohio. Cargill will continue to produce and market a wide selection of oil and shortenings products used in everything from cookies and crackers, to retail brand cooking oils and zero trans-fat frying oils used by quick-service restaurants. Cargill is one of the leading suppliers of salad and cooking oils, high stability oils, Omega-3 oils, frying oils and shortenings; cake and icing shortenings, confectionery and specialty fats; and tortilla shortenings. Ventura Foods is a leading producer of custom and proprietary dressings, sauces, mayonnaises, oils and other flavorings. The company has grown significantly over the past five years, serving leading foodservice companies, restaurants and retailers. In addition to its proprietary products produced for customers, Ventura Foods’ consumer brands available at retail include Marie’s dressings, LouAna oils, Dean’s dips and Gold n’ Soft spreads. “We remain very committed to being a leading provider of oils and shortening to North American consumer package goods companies, retailers, foodservice companies and food distributors. The sale of our DSM business will allow us to operate more efficiently, and bring more and better offerings and services to our customers,” said Cargill Fats & Oils North American Regional Managing Director, Gonzalo Petschen. “The acquisition of Cargill’s DSM business furthers Ventura Foods’ strategy to grow, strengthen and diversify. It adds greater depth to our already strong capabilities and another platform for innovation,” said Chris Furman, Ventura Foods’ President and CEO. Cargill’s DSM assets from its Sidney and Gainesville plants will be relocated to Ventura Foods’ facilities in Chambersburg, Penn., and Fort Worth, Texas. Cargill will provide contract manufacturing services for 15-18 months to Ventura Foods to ensure continuity for its customers and a smooth transition to Ventura Foods. Cargill will retain ownership of both the Sidney and Gainesville plants, where it will continue to own and operate its North American Fats & Oils business. Cargill’s 46 employees at Cargill’s DSM Port St. Lucie plant will be offered employment by Ventura Foods. Many of the 52 Cargill DSM employees in Gainesville and 197 Cargill DSM employees in Sidney will be retained by Cargill for 15-18 months during the Cargill-Ventura Foods co-manufacturing agreement. Cargill employs approximately 1,600 employees in Ohio, 800 in Georgia and 270 in Florida in various businesses, including food ingredients, beef, bio industrial, animal feed, and crop marketing. Cargill, Inc. is a privately held family-owned global company, based in Minnetonka, Minnesota, a Minneapolis suburb. Founded in 1865, it is ranked by Forbes as the largest privately held company in America, with revenue of $120.4 billion, and 149,000 employees in 70 countries. Cargill provides food, agriculture, financial and industrial products and services to the world. Ventura Foods is a privately-held joint venture of CHS Inc. and Mitsui & Co., with approximately $3 billion in annual revenue. Ventura Foods was founded in 1996 and is based in Brea, California. CHS is a farmer-owned cooperative founded in 1929. CHS is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. It has diversified into energy, grains and foods, with domestic and global operations. CHS has grown into a Fortune 100 company, which over the past five years has returned nearly $2 billion in cash to its farmer and member cooperative owners. Mitsui & Co. Ltd. is one of the largest general trading companies (sogo shosha) in Japan, and is part of the Mitsui Group keiretsu. The company has operating groups including Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food Resources, Food Products & Services, Consumer Services, Innovation & Corporate Development Businesses. Mitsui also operates real estate and overseas development projects.]]>