Sector News

Cargill to Buy ADM’s Chocolate Business for $440 Million

September 2, 2014
Food & Drink

Cargill Inc., the largest closely held U.S. company, agreed to acquire Archer-Daniels-Midland Co. (ADM)’s chocolate business for about $440 million to increase production in North America.

The deal is expected to close in the first half of next year, subject to regulatory approvals, Chicago-based ADM said today in a statement. ADM said in April that it had abandoned plans to sell its entire cocoa business as prices for the beans improved and would instead try to sell the chocolate operations. Cocoa prices have risen 31 percent in the last year as demand surpasses supply, increasing costs for chocolate makers.

“We considered several options to strengthen the returns of this part of our business,” ADM Chairman and Chief Executive Officer Patricia A. Woertz said in today’s statement. The sale “helps improve ADM’s returns and will allow us to redeploy capital for higher-return investments.”

Woertz in April said ADM had extensive negotiations with a potential buyer for the sale of its global cocoa and chocolate business and couldn’t reach an agreement that met the company’s objectives. ADM then decided to sell its global chocolate business and keep its cocoa presses, she said.

For Cargill, the acquisition broadens Cargill’s chocolate operations in Europe and particularly production in North America, according to a statement. Included in the sale are plants in Pennsylvania, Wisconsin, Ontario, the U.K., Belgium and Germany.

By Shruti Date Singh

Source: Bloomberg

comments closed

Related News

January 22, 2023

Danone unveils plan to cut methane emissions

Food & Drink

The company expects to eliminate 1.2 billion tons carbon dioxide equivalent of methane emissions by the end of the decade. The company says that it already reduced its methane emissions by around 14% between 2018 and 2020.

January 22, 2023

US researchers land US$2.4M to turn food waste into “affordable” bioplastics

Food & Drink

The “first-of-its-kind” pilot project will develop and demonstrate an affordable modular bioprocessing system to produce biodegradable bioplastics from food waste diverted from landfills. The three-year grant will test the scalability and feasibility of the conversion on a national and global scale.

January 22, 2023

Arkeon partners with ICL to transform CO2 into proteins

Food & Drink

Arkeon is allying with specialty mineral giant ICL to support the scaling of its fermentation bioprocess that converts CO2 into the 20 proteinogenic essential amino acids needed in human nutrition. The process, hailed as carbon negative, is based on the use of archaea, a group of microorganisms that naturally feeds off the greenhouse gas.

How can we help you?

We're easy to reach