Archer Daniels Midland Co. (NYSE: ADM) announced an agreement to purchase Specialty Commodities Inc. (SCI), a leading originator, processor and distributor of healthy ingredients, including nuts, fruits, seeds, legumes and ancient grains, for US$170 million, subject to post-closing adjustments.
“One of the ways we are improving returns and reducing the volatility of our earnings is through the expansion of our specialty ingredients portfolio,” said ADM Chairman and CEO Patricia A. Woertz. “One milestone in the ongoing process was the addition of WILD Flavors; the addition of Specialty Commodities Inc. is another step. Consumers around the world are demanding higher-quality, better-tasting, healthier foods with clean labels. We are continuing to add new product streams to our portfolio to enhance our capabilities to serve our customers as they respond to this demand.”
SCI, which was founded almost three decades ago, works with a global network of suppliers to source natural and organic ingredients and distribute them to customers in the snack, ice cream, cereal, nutrition bar, health food, bakery, pet food and bird food markets.
“We are pleased that SCI will become part of ADM,” said Larry Leitner, SCI founding partner and CEO. “SCI’s suppliers, colleagues and customers will benefit from ADM’s world-class innovation, supply-chain and manufacturing capabilities. And with our complementary geographies, similar business models, and shared focus on quality and customers, we see a bright future for the business.”
SCI is majority owned by Goldner Hawn Johnson & Morrison. When the transaction closes, SCI will become part of ADM’s new WILD Flavors and Specialty Ingredients business unit.
“This is another step as we continue to broaden the portfolio of ingredients we offer, enhance our knowledge and expertise, and focus on the quality of our products and the markets that matter most to our customers,” said Greg Morris, president, WILD Flavors and Specialty Ingredients.
ADM anticipates closing the transaction, which is subject to regulatory approval, in the coming weeks.