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ADM to taste deal with FCC
Posted on Friday, 11 January 2019 16:14
Archer Daniels Midland (ADM) is expanding its ingredients portfolio by buying Florida Chemical Company (FCC), which specialises in developing citrus-based flavours and fragrances, for USD 175.00 million.

The transaction is expected to complete in the first quarter of 2019, subject to regulatory approval.

ADM will take on all of the target’s 75 employees and tap into the citrus market, which is one of the fastest growing flavour categories, according to Vince Macciocchi, president of the buyer’s nutrition business unit.

Founded in 1942 and bought by Flotek in 2013, FCC produces a range of citrus flavour ingredients, including speciality terpenes, hydrocarbons that are found in the essential oils of plants.

Its products are used to create fragrances, as well as to improve the quality of food and beverages which contain artificial or natural sweeteners.

FCC adds to the buyer’s already vast ingredients portfolio, comprising plant sterols, proteins, edible beans, lecithin and mint oils and extracts.

Josh Snively, president of FCC, said: “Florida Chemical’s citrus expertise, together with our combined leadership in research and development, will allow us to strategically accelerate and expand our diverse offering to a wide and growing customer base.”

ADM claims to be one of the world’s largest agricultural processors, and operates 500 crop procurement locations and 270 food and feed manufacturing facilities, as well as a customer base spanning 170 countries.

For the nine months ended 30th September 2018, it generated revenue of USD 48.39 billion, up from USD 44.76 billion in the corresponding period of 2017.

According to Zephyr, the M&A database published by Bureau van Dijk, there were 1,662 deals targeting food manufacturers announced worldwide in 2018.

In the largest and the only transaction to surpass USD 10.00 billion, Conagra Brands bought bagel manufacturer Pinnacle Foods for USD 10.90 billion.

Other companies targeted in this sector last year include Blue Buffalo Pet Products, Frutarom Industries, Ainsworth Pet Nutrition and Nutrisystem.

© Zephus Ltd