Archer Daniels Midland (ADM), a food processing and commodity-trading business based in the USA, has purchased the German flavour and fragrance company Wild Flavors.
Announcing the acquisition in a statement, ADM said that the deal was an all-cash transaction valued at approximately €2.3 billion ($3.1 billion) enterprise value, including the assumption of €0.1 billion ($0.14 billion) net debt. The acquisition would allow ADM to offer food and beverage companies a comprehensive suite of systems to enhance and improve their products, the company said.
“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”.
Wild Flavors offer products including fruit juice concentrates and blends, natural flavours and extracts, mint oils and flavors, colours from natural sources, sweetening systems, seasonings, specialty ingredients, taste modifiers, and fermentation technologies.
The deal is expected to close by end of the year, subject to regulatory approval.