Cargill has announced plans to sell its Penthalaz, Switzerland-based flour business, operating as Provimi Kliba SA, to flour and grain milling company Groupe Minoteries SA.
The sale includes the land, buildings, and machinery involved in the flour milling, grain origination and feed production facilities located at sites in Penthalaz and Orbe. Terms of the agreement were not made public, and the deal is expected to close in early August.
A new Company, Grands Moulins de Cossonay Sarl à Penthalaz will be established and 41 of Cargill's employees will be transferred to the new Company. Groupe Minoteries SA will purchase the shares of the new Company through the transaction.
Managing director for Cargill's animal nutrition businesses Provimi Kliba SA and Protector SA in Switzerland, Richard Sinclair said "The sale of our flour business in Penthalaz and decision to invest in the Kaiseraugst and Lucens feed facilities is part of our overall strategy to position our animal nutrition business in Switzerland for growth."
He continued saying, "This sale allows us to exit our non-core flour business and more effectively capitalize on growth opportunities within our animal nutrition business to bring more value to our customers and our employees."
After the sale is complete, Cargill intends to lease the feed production facilities at the Penthalaz plant from Groupe Minoteries SA.
Feed production volumes as well as most positions from Penthalaz will be transitioned to the company's Kaiseraugst facility and to the Protector SA facility in Lucens, Switzerland, over the next 18 months.
In addition, the company is investing up to $12 million to expand the capacity and efficiency of these facilities to accommodate the increased volume resulting from the transition.