- Addition of Algar Agro plants in Uberlândia and Porto Franco enhances ADM’s position in important Brazilian meal and bottled oil markets
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it has
reached an agreement to purchase certain assets of Brazil-based Algar
Agro, including oilseeds processing facilities in Uberlândia in the
state of Minas Gerais, and Porto Franco in Maranhão.
“ADM is already the most diversified oilseeds processor in the world,
and now we are once more expanding our capabilities to help meet growing
global demand,” said Greg Morris, senior vice president and president of
ADM’s Oilseeds business. “The acquisition of Algar Agro’s crush and
refinery plants in Minas Gerais and Maranhão strengthens our position in
key Brazilian demand regions, and continues our strategic global growth.
We’ve recently launched our new oilseeds joint venture with Cargill in
Egypt, and we have completed several enhancements to our European and
North American processing operations. With the addition of these new
plants in Brazil, we are further enhancing and strengthening our global
network at a time when both the near- and long-term outlook for global
meal demand continues to be strong. We’re excited about this bolt-on
acquisition, and about all of the actions we are taking to deliver on
our strategic plan to enhance shareholder value.”
Under the terms of the deal, ADM will become owner of integrated crush
and oil refining/bottling facilities in Uberlândia and Porto Franco. ADM
will also gain access to an extensive network of origination and storage
silos throughout northeastern and southeastern Brazil.
“Demand for meal and bottled oil in the northeast and southeast regions
of Brazil continues to grow, and we are excited to expand our
capabilities there,” said Domingo Lastra, ADM’s president, South
America. “We’re looking forward to working with the great Algar Agro
team, not to mention customers throughout both regions, as we continue
to provide the highest quality meal and oils.”
“This deal represents an important step towards the implementation of
Algar Group´s portfolio and capital allocation strategy,” said Luiz
Alexandre Garcia, CEO, Algar Group. “In the Agribusiness sector, we are
exiting the soybean crushing and trading segment and focusing on grains
production (Algar Farming). We also are strengthening our position in
the Information & Communications Technology (Algar Telecom and Algar
Tech), Tourism & Entertainment (Rio Quente Resorts and Costa do Sauipe)
and Renewable Energy sectors (Alsol). We firmly believe that ADM was the
best partner to engage with and execute this transaction, given the long
term relationship we have with ADM and its distinctive capabilities and
leadership in the Agribusiness sector.”
ADM’s current Oilseeds operations in Brazil include soy processing
plants in Rondonópolis, Campo Grande, Ipameri, Joaçaba and Uberlândia; a
sunflower plant in Campo Novo dos Parecis; biodiesel refineries in
Rondonópolis and Joaçaba; and a network of storage facilities with a
total capacity of 2.2 million metric tons. The company produces and
sells the Concórdia™, Corcovado™ and Vitaliv™ brands of cooking oils.
The deal, which requires Brazilian regulatory approval, is expected to
close by the end of the year. When the transaction is complete, Algar
Agro’s approximately 400 employees will transfer to ADM.
Forward-Looking Statements
Some of the above statements constitute forward-looking statements.
ADM’s filings with the SEC provide detailed information on such
statements and risks, and should be consulted along with this release.
To the extent permitted under applicable law, ADM assumes no obligation
to update any forward-looking statements.
About ADM
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve the vital
needs of a growing world. Today, we’re one of the world’s largest
agricultural processors and food ingredient providers, with
approximately 31,000 employees serving customers in more than 170
countries. With a global value chain that includes approximately 500
crop procurement locations, 270 ingredient manufacturing facilities, 44
innovation centers and the world’s premier crop transportation network,
we connect the harvest to the home, making products for food, animal
feed, industrial and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company
Media Relations
Jackie Anderson
media@adm.com
312-634-8484