ADM buys WILD Flavors for €2.3bn

US-based food processing company Archer-Daniels-Midland (ADM) is acquiring Swiss flavour manufacturer WILD Flavors, in a deal worth around €2.3bn.

As part of the deal, ADM will pay €2.2bn to Wild Flavors shareholders and assume about €0.1bn of net debt.

With around 3,000 customers globally and estimated 2014 net revenues of around €1bn, WILD Flavors provides food and beverage companies with full flavour and ingredient solutions known as flavour systems.

WILD also offers fruit juice concentrates and blends, as well as other food and beverage ingredients, comprising natural flavours and extracts, mint oils and flavours, colours from natural sources, sweetening systems, seasonings, specialty ingredients, taste modifiers, and fermentation technologies.

The company has manufacturing facilities across Europe, the Middle East, Asia and the Americas, and is the world’s sixth-biggest flavour provider.

The transaction, which is expected to be completed by the end of 2014, is subject to regulatory approvals.

ADM chairman and CEO Patricia Woertz said that 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," Woertz added.

WILD Flavors chairman Hans-Peter Wild said: "WILD Flavor’s unique natural flavours 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."

ADM, which has around 270 processing plants and 70 crop procurement facilities, provides specialty ingredients and products for the beverage, meat, snack, bakery, cereal, wellness and personal care markets.