Cargill, the largest privately held corporation in the United States in terms of revenue, has revealed that it has agreed to purchase the global chocolate business of the food processing and commodities trading firm Archer Daniels Midland (ADM).
The transaction is valued at $440 million and includes ADM’s three North American chocolate plants, located in Milwaukee (Wis.), Hazleton (Penn.), and Georgetown (Ontario) as well as three in Europe: Liverpool (UK), Manage (Belgium) and Mannheim (Germany). In addition, the brands Ambrosia, Merckens and Schokinag will be added to the Cargill portfolio.
Cargill said the acquisition was part of its strategy to expand across North America, Europe, Asia and Brazil, and increase production capacity, particularly in North America.
According to Bryan Wurscher, president Cargill Cocoa and Chocolate North America: “This acquisition is a major milestone in Cargill’s chocolate growth strategy and will help us better serve our customers in North America and Europe. Our customers will benefit from a broader product portfolio, greater access to innovation and product development support”.
The transaction, which is subject to regulatory approval in the United States and the European Union, is expected to close in the first half of 2015.
Source: Cargill / Food Manufacturing