Archer Daniels Midland Company (ADM), the US-based agribusiness giant, has agreed to buy Wild Flavors, a supplier of natural ingredients to the food and beverage industry, in a deal worth €2.3bn (£1.83bn).
ADM will buy Wild Flavours from Hans Peter Wild, who has a 65 per cent stake in the company, and private equity firm Kohlberg Kravis Roberts & Co, which owns the remaining 35 per cent.
ADM, founded in 1902, is one of the largest agricultural processors in the world, and today has 31,000 employees, with more than 270 processing plants and 470 crop procurement facilities.
Wild Flavors specialises in natural ingredients, with more than 3,000 customers worldwide in the food and beverage industry, and estimated net revenues for 2014 of over €1bn.
Wild is the son of company founder Rudolph Wild, with the family’s businesses known for the production of the popular Capri-Sun fruit juice drink range.
However, it was stated that Capri-Sun would not be part of the deal with ADM and would remain in the hands of the Wild family.
“Together, ADM and Wild Flavors will create one of the leading flavour and specialty ingredient companies in the world, with sales approaching $2.5bn and significant room to grow.” said ADM chief executive Patricia Woertz.
The deal is expected to be completed by the end of the year, subject to necessary regulatory approval.