€2.3 billion acquisition adds flavor systems to portfolio of specialty ingredients
DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today announced that it is
acquiring WILD Flavors GmbH, giving ADM the ability to offer food and
beverage companies a comprehensive suite of systems to enhance and
improve their products.
In an all-cash transaction valued at approximately €2.3 billion
enterprise value, ADM will pay €2.2 billion to WILD Flavors shareholders
Dr. Hans-Peter Wild and funds affiliated with Kohlberg Kravis Roberts &
Co. L.P., and assume approximately €0.1 billion of net debt. The
transaction is contingent on regulatory approvals and is expected to
close by year end.
“This acquisition expands ADM’s ability to serve customers’ evolving
needs today and well into the future,” said ADM Chairman and CEO
Patricia Woertz. “Natural flavor and ingredients is one of the largest
and fastest-growing consumer trends in both developed and emerging
markets, and WILD Flavors is the world’s leading provider of natural
flavor systems to the food and beverage industry.”
WILD Flavors, with more than 3,000 customers worldwide and estimated
2014 net revenues of about €1 billion, 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, including natural flavors and extracts, mint
oils and flavors, colors from natural sources, sweetening systems,
seasonings, specialty ingredients, taste modifiers, and fermentation
technologies.
“Together, ADM and WILD Flavors will create one of the leading flavor
and specialty ingredient companies in the world, with sales approaching
$2.5 billion and significant room to grow,” Woertz said. “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.
“Together, we will be uniquely positioned to offer a broad range of
customers—from the largest CPG’s to fast-growing
innovators—comprehensive systems-based solutions for food, beverage and
personal care products. With our combined global networks, world-class
research & innovation capabilities, WILD Flavors’ natural flavor
systems, and ADM’s texture, nutrition and functional solutions, we will
create an unmatched capability to respond to local consumer preferences
and offer complete food solutions that taste great.
“The addition of WILD Flavors balances and extends our value chain,”
Woertz said. “It is consistent with our long-term strategy to diversify
the crops we process and expand and diversify our product portfolio. It
complements the ingredient, organic-growth investments we’ve recently
made—including our Brazil protein complex and soluble-fiber expansion in
China. And it is consistent with actions we’ve taken to dampen the
volatility of our earnings mix and deliver on our commitment to
profitable growth. The acquisition will meet our return objectives, with
estimated cost and revenue synergies of €100 million by year three.”
Dr. Hans-Peter Wild, chairman of WILD Flavors GmbH, said, “I am very
pleased by ADM’s acquisition of WILD Flavors and the future business we
will build together. WILD Flavor’s unique natural flavors strength and
total systems approach will create a very strong and positive
development platform within ADM for our customers as we continue to
drive innovation in the food and beverage industry. With the strong
financial resources, and expanded customer base, product offering and
global footprint, I am confident WILD Flavors will be well-positioned
for growth.”
“We have tremendous respect for the culture and business that Dr. Wild
has built,” Woertz said. “Given the strong brand WILD Flavors has with
customers around the world, we intend to maintain the WILD Flavors name
and grow the brand and the innovative, entrepreneurial culture that
sustains it. We appreciate the difference in our business models, and
will support continued success of the WILD Flavors model by establishing
a new business unit called WILD Flavors and Specialty Ingredients. The
new unit will include many of our specialty ingredients. We are also
excited to work with the WILD Flavors team. With more than 400
scientists and applications specialists and a global sales force, they
will bring exceptional expertise and new capabilities.”
Johannes Huth, member and head of KKR Europe, Africa and Middle East
operations, said: “WILD Flavors represented for KKR the opportunity to
partner with an innovative family entrepreneur in developing a
high-quality, R&D driven, Germany-based Mittelstand business. The
partnership was tailored to the family ownership and the vision of Dr.
Wild to develop WILD Flavors into a globally integrated producer of
flavors and flavor systems. The substantial growth and global expansion
of WILD Flavors over these past years helped make the company an
attractive and valuable partner for an industry-leading global company
like ADM.”
Barclays is acting as financial advisor to ADM. Skadden, Arps, Slate,
Meagher & Flom LLP is acting as legal advisor.
Investor Call
ADM will host a conference call and audio webcast today, July 7, 2014,
at 8 a.m. Central Time. A slide presentation will be available to
download prior to the call.
To listen to the call via the Internet or to download the slide
presentation, go to www.adm.com/webcast.
To listen by telephone, dial (888) 522-5398 in the U.S. or (706)
902-2121 if calling from outside the U.S. The access code is 70905489.
Replay of the call will be available from July 8, 2014 to July 14, 2014
10:59 p.m. Central Time. To listen to the replay by telephone, dial
(855) 859-2056 in the U.S. or (404) 537-3406 if calling from outside the
U.S. The access code is 70905489. The replay will also be available
online for an extended period of time at www.adm.com/webcast.
About ADM
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve vital needs.
Today, 31,000 ADM employees around the globe convert oilseeds, corn,
wheat and cocoa into products for food, animal feed, industrial and
energy uses. With more than 270 processing plants, 470 crop procurement
facilities, and the world’s premier crop transportation network, ADM
helps connect the harvest to the home in more than 140 countries
ADM’s Foods & Wellness group offers a range of innovative specialty
ingredients and products for the beverage, meat, snack, bakery, cereal,
wellness and personal care markets. As a global market leader in
food-grade proteins, ADM’s Foods & Wellness group also markets numerous
health and nutrition products, lecithin, acidulants, hydrocolloids and
polyols. Some of those products include Textura™ protein and fiber
pieces, Clarisoy™ beverage protein, and Ultralec® lecithin. For more
information about ADM and its products, visit www.adm.com.
About WILD Flavors GmbH
WILD Flavors GmbH is headquartered in Zug, Switzerland, and is one of
the world’s leading suppliers of natural ingredients to the food and
beverage industry. Its management offices with production sites are
located in Heidelberg-Eppelheim, Germany (Rudolf Wild GmbH & Co. KG) and
Erlanger, Kentucky, USA (WILD Flavors, Inc.). Thirteen further
production sites are located in Europe, USA, Canada, China, Japan,
India, Brazil, and Dubai.
The WILD Flavors product portfolio includes full flavor and ingredient
solutions, known as flavor systems, fruit juice concentrates and blends
as well as other food and beverage ingredients including natural flavors
and extracts, mint oils and flavors, colors from natural sources,
sweetening systems, seasonings, specialty ingredients, taste modifiers,
and fermentation technologies. WILD Flavors GmbH provides the global
beverage and dairy market as well as the baked-goods, confectionery and
ice cream industry with its products. In the USA and Canada, WILD
Flavors GmbH is a supplier for the cereals, snacks, and processed food
markets as well. For more information about WILD, please visit: www.wildflavors.com.
About KKR
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com.
Archer Daniels Midland Company
Media Relations
Jackie Anderson, 217-424-5413
media@adm.com
or
Media Relations, Europe
Elissa Bertot, +41 21 702 8400
media-eu@adm.com