MGP Ingredients, Inc. Announces Formation of New Holding Company
ATCHISON, Kan., January 3, 2012 -- MGP Ingredients, Inc. (Nasdaq: MGPI) announced that it has reorganized by creating a new holding company structure. The business operations of the company and its subsidiaries will not change as a result of the reorganization.
As part of the holding company reorganization, a new parent company was formed. Outstanding shares of the capital stock of the former parent company, which was formerly named MGP Ingredients, Inc. and is now named MGPI Processing, Inc., were automatically converted, on a share for share basis, into identical shares of common stock and preferred stock of the new holding company. The new parent company is named MGP Ingredients, Inc.
The articles of incorporation, the bylaws, the executive officers and the board of directors of the new holding company are the same as those of the former MGP Ingredients, Inc. in effect immediately prior to the reorganization. The common stock of the new holding company will continue to be listed on the NASDAQ Global Select Market under the symbol “MGPI.” The rights, privileges and interests of the Company’s stockholders will remain the same with respect to the new holding company.
About MGP Ingredients
In business since 1941, MGP Ingredients, Inc. is a recognized pioneer in the development and production of value-added, grain-based starches, proteins and food grade alcohol products for the branded packaged goods industry. The company has facilities in Atchison, Kansas and Onaga, Kansas that are equipped with the latest technologies to assure high quality products and to maintain efficient production and service capabilities.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements as well as historical information. Forward-looking statements are usually identified by or are associated with such words as "intend," "plan," "believe," "estimate," "expect," "anticipate," "hopeful," "should," "may," "will", "could," "encouraged," "opportunities," "potential" and/or the negatives of these terms or variations of them or similar terminology. They reflect management's current beliefs and estimates of future economic circumstances, industry conditions, company performance and financial results and are not guarantees of future performance. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from our expectations include, among others: (i) disruptions in operations at our Atchison facility, (ii) the availability and cost of grain and fluctuations in energy costs, (iii) the effectiveness of our hedging strategy, (iv) the competitive environment and related market conditions, (v) our ability to maintain compliance with all applicable loan agreement covenants (vi), the ability to effectively operate the Illinois Corn Processing, LLC joint venture, (vii) our ability to realize operating efficiencies, (viii) and actions of governments. For further information on these and other risks and uncertainties that may affect the company's business, see Item 1A. Risk Factors in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2011 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.