Bunge To Buy Kama Foods

WHITE PLAINS - Mar 2/04 - SNS -- Bunge Europe has signed a preliminary agreement to buy the assets Polish edible oil and margarine producer Kama Foods from bankruptcy receivership, through EWICO, a limited liability company in Poland.

Under the terms of the agreement, EWICO, which is half owned by Bunge, will purchase the assets of Kama Foods free and clear of all debts and liabilities for approximately 81 million PLN (approximately US$21.3 million), with 20 million PLN (approximately US$5.3 million) payable on execution of the preliminary agreement.

The transaction is expected to close by the end of June 2004, at which time EWICO will pay the outstanding balance. Beginning March 1st until the transaction closes, EWICO will operate Kama Foods under a lease agreement.

"This strategic acquisition is part of Bunge’s continued expansion in Eastern Europe," said Jean-Louis Gourbin, CEO of Bunge Europe. "It will allow Bunge to build closer relationships with farmers and to better serve customers and consumers in Poland."

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