Archer Daniels Midland Company (NYSE:ADM) announced its decision to acquire Wild Flavors GmbH, a natural food ingredients manufacturer for approximately ($3 billion) €2.3 billion in cash. The transaction is considered the largest acquisition by the company.
Details of the transaction
According to Archer Daniels Midland Company (NYSE:ADM), it would pay €2.2 billion to the shareholders of Wild Flavors including Dr. Hans-Peter Wild and the funds affiliated with KKR & Co. L.P. (NYSE:KKR).
Archer Daniels Midland Company (NYSE:ADM) also agreed to assume approximately €100 million net debt of Wild Flavor. The acquisition is expected to be completed by the end of this year, subject to regulatory approvals.
In a statement Patricia Woertz, chairman and CEO of Archer Daniels Midland Company (NYSE:ADM) said, “This acquisition expands ADM’s ability to serve customers’ evolving needs today and well into the future. Natural flavor and ingredients are one of the largest and fastest-growing consumer trends in both developed and emerging markets, and Wild Flavors is the world’s leading provider of natural-flavor systems to the food and beverage industry.”
In addition, Woertz said the combining Archer Daniels Midland Company (NYSE:ADM) and Wild Flavors would create one of the leading flavor and specialty ingredient companies worldwide. According to her, the sales of the company are close to $2.5 billion with room to grow.
“WILD Flavors will be able to reach more customers with an expanded portfolio of innovative ingredients. And ADM, with our own sizeable specialty ingredient business, will have an enhanced platform for the commercialization of our higher-margin food and wellness ingredients,” further stated Woertz.
Uniquely positioned to offer to a wide range of customers
Moreover, Woertz emphasized that Archer Daniels Midland Company (NYSE:ADM) and Wild Flavors would be uniquely positioned together to offer to a wide range of customers from the largest CPG’s to fast growing innovators.
According to her, the two companies would be able to create an unmatched ability to address local consumer preferences and provide complete and great tasting food solutions through their combined global networks, world-class research and innovation capabilities.
Archer Daniels outbids Ajinomoto
Archer Daniels Midland Company (NYSE:ADM) beat the bidding of Ajinomoto Co Inc (TYO:2802) (OTCMKTS:AJINY) to acquire Wild Flavors, according to Bloomberg based on information from people familiar with the situation.