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

Related News

April 10, 2021

Crown agrees to sell its EMEA food packaging unit in €2.25bn deal

Food & Drink

Crown’s European Tinplate business is one of the largest manufacturers of steel and aluminium food packaging in Europe, operating 44 manufacturing facilities in 17 countries across Europe, the Middle East and Africa.

April 10, 2021

Nestlé opens new plant-based food production site in Malaysia

Food & Drink

The facility, which marks the first in ASEAN and second in Asia, will cater to the rising local demand for plant-based food, as well as exports. It joins the company’s plant-based food facility in Tianjin, China.

April 10, 2021

DSM invests $100m in launch of personalised nutrition company

Food & Drink

The newly-formed company seeks to disrupt the nutritional marketplace by creating brands that target various health conditions.

Send this to a friend