Archer Daniels Midland acquires Wild Flavors for $3 bn

Archer Daniels Midland Company (ADM) has signed a deal to acquire German flavour company Wild Flavors GmbH for Euro 2.3 billion (about $3.13 billion). This will give Archer Daniels Midland the ability to offer food and beverage companies a comprehensive suite of systems to enhance and improve their products.
 
As per the deal, ADM will pay Euro 2.2 billion to Wild Flavors shareholders Dr Hans-Peter Wild and funds affiliated with Kohlberg Kravis Roberts & Co LP, and assume approximately Euro 0.1 billion of net debt. The transaction is contingent on regulatory approvals and is expected to close by year end.
 
Patricia Woertz, Chairman and CEO, ADM, “This acquisition expands ADM’s ability to serve customers’ evolving needs today and well into the future. Natural flavour 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 flavour systems to the food and beverage industry.” 
 
Wild Flavors, with more than 3,000 customers worldwide and estimated 2014 net revenues of about Euro 1 billion, offers food and beverage companies full flavour and ingredient solutions - known as flavour systems - and fruit juice concentrates and blends, as well as other food and beverage ingredients, including natural flavours and extracts, mint oils and flavours, colours from natural sources, sweetening systems, seasonings, specialty ingredients, taste modifiers, and fermentation technologies.
 
“Together, ADM and Wild Flavors will create one of the leading flavor and specialty ingredient companies in the world, with sales approaching $2.5 billion and significant 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 commercialisation of our higher-margin food and wellness ingredients,” added Woertz.