© Reuters. FILE PHOTO: The logo of Archer Daniels Midland Co. (ADM) is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS /Brendan McDermid/File Photo
(Reuters) – U.S. agribusiness Archer-Daniels-Midland said on Tuesday it would buy British flavors and ingredients firm FDL, as the company looks to expand its nutrition business.
ADM, one of the world's largest cereal traders and a major food processor, has diversified into the flavor and nutritional foods business through acquisitions in the sector, starting with the $3 billion acquisition of WILD Flavors. dollars in 2014.
FDL operates three production facilities in the UK and would record projected sales of around $120 million in 2023, ADM said.
The company did not disclose financial details of the deal, but said it expects the transaction to close by the end of January.
“Our ongoing investments to add to our flavor portfolio are helping drive our strategic work to build a global leader in nutrition,” ADM executive Calvin McEvoy said in a statement.
The move follows ADM's acquisition of Revela Foods, a Wisconsin-based developer and manufacturer of dairy flavor ingredients and solutions.
Brokerage BMO Capital Markets said Monday that while ADM would likely face pressure on soybean crush margins and ethanol margins in 2024, the company's efforts to grow its portfolio across segments such as nutrition should improve earnings. returns.
