Sector News

ADM acquires two Brazilian oilseed plants from Algar Agro

August 16, 2018
Consumer Packaged Goods

ADM has agreed a deal to acquire two Brazilian oilseed processing facilities from Algar Agro, the agri-food division of Grupo Algar, for an undisclosed figure.

Located in Uberlândia and Porto Franco, the two integrated crush and oil refining/bottling facilities will join ADM’s Brazilian oilseed network, which includes five soy processing plants, a sunflower plant and two biodiesel refineries.

ADM will also gain access to Algar Agro’s network of origination and storage silos throughout northeastern and southeastern Brazil as a result of the deal, adding to ADM’s existing storage network in the country, which has a capacity of 2.2 million metric tonnes of oilseed products.

The deal is subject to regulatory approval from Brazilian authorities, and ADM claims that the deal should be completed by the end of the year.

All 400 employees at the two facilities will retain their positions, and transfer to ADM once the deal is completed.

ADM produces and sells cooking oils under the Concórdia, Corcovado and Vitaliv brands in Brazil, and the company says that the deal will strengthen its position in the Brazilian meal and bottled oil markets.

Greg Morris, senior vice-president and president of ADM’s Oilseeds business said: “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.

“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.”

Domingo Lastra, the president of ADM’s South America business added: “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.

“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.”

By Martin White

Source: FoodBev

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