US-based food processing company Archer-Daniels-Midland (ADM) has acquired Swiss flavor manufacturer Wild Flavors, the Switzerland-based producer of natural ingredients, in a deal worth EUR2.3bn.
ADM will pay €2.2bn to acquire WILD Flavors and assume approximately €0.1bn of net debt.
WILD Flavors offers food and beverage companies full flavor and ingredient solutions -- known as flavor systems -- and fruit juice concentrates and blends, as well as other food and beverage ingredients.
Its product range includes natural flavors and extracts, mint oils and flavors, colors from natural sources, sweetening systems, seasonings, specialty ingredients, taste modifiers, and fermentation technologies.
The company has more than 3,000 customers worldwide and estimated 2014 net revenues of about €1bn.
This deal will allow ADM to diversify from grain processing and gain a greater market share in the food and beverage market which relies on more natural raw materials.
ADM Chairman and CEO Patricia Woertz said that together, ADM and WILD Flavors will create one of the leading flavor and specialty ingredient companies in the world, with sales approaching $2.5bn 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 commercialization of our higher-margin food and wellness ingredients."
"The acquisition will meet our return objectives, with estimated cost and revenue synergies of €100 million by year three," Woertz added.
