For inquiries on this matter, please contact
- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, Japan. President and CEO: Tatsuo Yasunaga) has acquired, through Mitsui & Co. (U.S.A.), Inc., an equity interest in Bluegrass Farms of Ohio, Inc. ("Bluegrass"), a grain originator specializing in non-genetically modified (GMO) grains in the United States. Mitsui has entered into an agreement to acquire 50% of Bluegrass shares from its CEO, Mr. David Martin, who currently owns 100% of shares.
Bluegrass, since its establishment in 1988, has consistently specialized exclusively in non-GMO grains. It supplies contracted growers with seed that it develops itself and originates the grains (mainly soybeans and corn) after they are harvested. The grains are selected and packaged for domestic and overseas sale as high-added-value products. The Mitsui & Co. group as a whole accounts for large share of non-GMO soybean supplies in Japan. It has built a strong business relationship with Bluegrass for around 10 years and handles over 40% of Bluegrass products. Mitsui aims to strengthen this relationship further through equity participation in Bluegrass.
There is steady demand for non-GMO grains in Japan and other Asian markets, and in recent years there has also been a dramatic increase in the quantity of these products sold through supermarkets and restaurant chains specializing in high-added-value products and meals, especially in the United States. In addition, baby food manufacturers have started to use non-GMO grains as ingredients. Global demand can be expected to increase further in the future. This investment will allow Mitsui to respond to growing demand for food products made from non-GMO grains, using the knowledge, expertise and customer base that it has developed by handling non-GMO grains for many years, as well as networks developed by the entire Mitsui & Co. group.
Mitsui will use this investment as an opportunity to contribute to further growth in the markets for high-added-value food in Japan, Asia, and the United States by securing access to high-quality non-GMO grains as the basis for a stable supply of food resources to those markets.
|Company name||Bluegrass Farms of Ohio, Inc.|
|Head office||Jeffersonville, Ohio, U.S.A.|
|Ownership (after investment by Mitsui & Co. (U.S.A.)||David Martin, CEO (50%), Mitsui & Co. (U.S.A.), Inc. (50%)|
*Year ended September 2014)
|Approx. US$34 million (approx. ¥4 billion)|
|Business outline||Origination, processing, sales, and export of Non-GMO grains|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.