Archer Daniels Midland Co. (ADM), one of the largest agricultural and food-processing corporations in the country, recently announced its plan to acquire privately operated Swiss company Wild Flavors. According to Crain’s Chicago Business, the “all-cash deal will total $3.13 billion counting debt, or 2.3 billion euros.” The acquisition will be ADM’s largest purchase to date.
Wild Flavors is currently owned by Hands-Peter Wild, the son of the company’s eponymous founder, and private-equity firm KKR. According to The Wall Street Journal, KKR, founded by Henry R. Kravis and George Roberts, holds a 35% stake in the company; Mr. Wild owns the rest. Reportedly, not only will KKR and Mr. Wild benefit from the initial purchase of Wild Flavors, ADM plans to assume an additional 100 million euros of net debt as well.
Headquartered in Decatur, Illinois, ADM already specializes in producing sweeteners, soybeans, cocoa, vegetable oils, and myriad ingredients used in packaged food and beverages. The acquisition of Wild Flavors will now allow the company to focus on natural flavors as an additional source of revenue; investing in the Swiss company is a highly strategic move for ADM, and one that will continue to elevate its status in the global agri-business industry. According to The Wall Street Journal, ADM ranks among the world’s chief dealers in crops bringing in about $90 billion in annual revenue.
Headed by CEO Patricia Woertz, ADM has a strong focus on company diversity and empowering women in business, as well as getting more women into traditionally male-dominated industries. With more large-scale acquisitions like the company’s purchase of Wild Flavors, ADM will likely continue to increase its annual revenue, as well as its highly respected reputation among industry competitors.
Learn more about ADM’s recent acquisition by reading Crain’s full coverage of the business deal.