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ADM to acquire wild flavors for 2.3 billion [euro].

Archer Daniels Midland Company is acquiring WILD Flavors GmbH in an all-cash transaction valued at approximately 2.3 billion [euro] enterprise value, giving ADM the ability to offer food and beverage companies a comprehensive suite of systems to enhance and improve its products. The transaction is contingent on regulatory approvals and is expected to close by year-end.

"This acquisition expands ADM's ability to serve customers' evolving needs today and well into the future," said ADM Chairman and CEO Patricia Woertz. "Natural flavor and ingredients is 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."

With more than 3,000 customers worldwide and estimated 2014 net revenues of about 1 billion [euro], WILD Flavors offers food and beverage companies full flavor and ingredient solutions--known as flavor systems--and fruit juice concentrates and blends, as well as other food and beverage ingredients, including natural flavors and extracts, mint oils and flavors, colors from natural sources, sweetening systems, seasonings, specialty ingredients, taste modifiers and fermentation technologies.

"The addition of WILD Flavors balances and extends our value chain," Ms. Woertz said. "It is consistent with our long-term strategy to diversify the crops we process and expand and diversify our product portfolio. It complements the ingredient, organic-growth investments we've recently made--including our Brazil protein complex and soluble-fiber expansion in China. And it is consistent with actions we've taken to dampen the volatility of our earnings mix and deliver on our commitment to profitable growth. The acquisition will meet our return objectives, with estimated cost and revenue synergies of 100 million [euro] by year three."

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Title Annotation:Industry News
Publication:Nutraceuticals World
Date:Sep 1, 2014
Words:281
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