ADM Adds Industry-Leading Citrus Capabilities to Flavor Portfolio with Acquisition of Florida Chemical Company
January 11 2019 - 6:45AM
Business Wire
Archer Daniels Midland Company (NYSE: ADM) announced today that
it had reached an agreement to acquire Florida Chemical Company
(FCC), a division of Flotek Industries (NYSE: FTK) specializing in
citrus-based flavors and fragrances, and one of the world’s largest
providers of citrus oils and ingredients.
“ADM is already a leader in natural flavors for food and
beverages, offering a wide variety of high-value products and
solutions in areas such as vanilla and mint, and this acquisition
will place us in a leadership position for citrus flavors as well,”
said Vince Macciocchi, president of ADM’s Nutrition business unit.
“Citrus is one of the fastest-growing flavor categories, and the
single most important taste profile for beverages, and no one in
North America does citrus better than Florida Chemical
Company.”
Founded in 1942, FCC has provided customers with premium citrus
ingredients for more than three quarters of a century. Based in
Winter Haven, Florida, the company produces a wide range of
high-value citrus flavor ingredients, specialty terpenes and
formulated products primarily for the flavor, fragrance and
consumer products markets. Their innovative, high-quality on-trend
products match consumer preferences for natural, clean label and
reduced sugar foods and beverages. FCC products include:
- Individual citrus flavor materials and
essential oils, including customized flavor blends;
- Flavor enhancers for grapefruit and
other citrus; and
- Citrus flavor modifiers specifically
targeted to improve the quality and taste of food and beverages
sweetened with natural or artificial sweeteners.
“With the acquisition of WILD in 2014, ADM began the journey to
become the world’s leading nutrition company,” Macciocchi
continued. “Starting with the foundation of a leading global flavor
company and our specialty ingredients portfolio, we’ve vastly
expanded our capabilities with additions like the savory flavors of
Eatem Foods, the plant proteins from Harvest Innovations,
probiotics from Biopolis and Protexin, and Rodelle’s premium
vanilla ingredients. The result is great for our customers and our
shareholders: No other company in the world can match the
expertise, innovation, products and solutions of ADM – and we’re
still growing.”
“ADM has long been an admired industry innovator whose global
nutrition portfolio capabilities are second-to-none. Florida
Chemical’s citrus expertise, together with our combined leadership
in research and development, will allow us to strategically
accelerate and expand our diverse offering to a wide and growing
customer base. Additionally, I am pleased that we will continue our
strong relationship with Flotek through both a long-term supply
agreement and through the joint pursuit of next-generation
chemistry technologies for the energy and agriculture industries,”
said Josh Snively, President of Florida Chemical and Flotek’s
Executive Vice President of Operations.
The deal, which requires regulatory approval, is expected to
close in the first quarter of 2019. When the transaction is
complete, FCC’s approximately 75 employees will transfer to
ADM.
Forward-Looking Statements
Some of the above statements constitute forward-looking
statements. ADM’s filings with the SEC provide detailed information
on such statements and risks, and should be consulted along with
this release. To the extent permitted under applicable law, ADM
assumes no obligation to update any forward-looking statements.
About Florida Chemical Company, LLC
Founded in 1942, Florida Chemical designs and delivers
high-quality products that meet the demands of a variety of
consumer and industrial applications, including food and beverage,
fragrance, and household and industrial cleaning products. Sourcing
citrus oil domestically and internationally, it is one of the
largest processors in the world.
About ADM
For more than a century, the people of Archer Daniels Midland
Company (NYSE: ADM) have transformed crops into products that serve
the vital needs of a growing world. Today, we’re one of the world’s
largest agricultural processors and food ingredient providers, with
approximately 31,000 employees serving customers in more than 170
countries. With a global value chain that includes approximately
500 crop procurement locations, 270 food and feed ingredient
manufacturing facilities, 44 innovation centers and the world’s
premier crop transportation network, we connect the harvest to the
home, making products for food, animal feed, industrial and energy
uses. Learn more at www.adm.com.
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RelationsJackie Andersonmedia@adm.com312-634-8484
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