US-based food processing firm Archer Daniels Midland Company (ADM) has reached an agreement to acquire Rodelle, a Colorado-based processor and supplier of vanilla products.

The financial details of the transaction have not been divulged by either of the companies.

The deal is subject to regulatory approval and ADM expects to complete the transaction in the third quarter of this year.

ADM North American WILD Flavors business president Scott Olstad said: “With the acquisition of Rodelle, we are continuing to grow our value chain by enhancing what is already one of the most comprehensive portfolios in the flavour industry.

“The addition of Rodelle will give us immediate capabilities in both the retail and commercial vanilla markets, and we see significant opportunities to expand the business.”

“Not only is vanilla one of the most popular and enduring flavours, but Rodelle’s integrated supply chain will allow us to offer an unparalleled range of certified organic and natural vanilla ingredients for today’s health-conscious consumers.

“The addition of Rodelle will give us immediate capabilities in both the retail and commercial vanilla markets, and we see significant opportunities to expand the business.

“We’re looking forward to working with the great Rodelle team to help build on their impressive success.”

Rodelle was originally established in 1936. The company is primarily engaged in the development of processing methods and the provision of premium vanilla products, including beans, and organic and traditional extracts, as well as alcohol-free flavours and pastes.

It also sells non-vanilla products, including flavourings, extracts, spice blends and organic spices.

In addition, Rodelle provides ingredient solutions for food and beverage manufacturers.

The company’s sales touched around $40m during the last fiscal year.

In Madagascar, Rodelle owns a stake in Federation Sahanala Vanille, which is a joint venture (JV) between Rodelle and a partnership of local associations that comprises more than 2,100 registered vanilla farmers.

Rodelle also has a strategic partnership with Gourmet Gardens for vanilla sourcing in Uganda.

The firm is claimed to offer competitive prices and a reliable supply by eliminating the third-party entities that are usually found in other vanilla processing supply chains.

Rodelle operates a 65,000ft2 extraction and processing facility in Fort Collins and employs 70 full-time staff members.

The facility was originally built in 2008 before being expanded in 2014 and includes labs for testing and research and development (R&D) operations.

Rodelle co-founder Joe Basta said: “We are extremely excited to have reached this agreement, and look forward to joining the ADM team and contributing Rodelle’s expertise in vanilla products to another well-established flavouring industry company.

“The Rodelle brand and our loyal customers will benefit greatly from ADM’s technical expertise and commercial capabilities.

“The core of our business will remain unchanged, and our customers can expect the high-quality vanilla and baking ingredients they have relied on for over 80 years.”

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