ADM to buy UK firm to boost nutrition business According to Reuters

© Reuters. FILE PHOTO: Archer Daniels Midland Co. Logo (ADM) is shown on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo

(Reuters) – U.S. agribusiness Archer-Daniels-Midland said on Tuesday it would buy British flavors and ingredients firm FDL as the company plans to expand its nutrition business.

ADM, one of the world’s largest grain traders and a major food processor, has diversified into the flavors and nutritional foods business through acquisitions in the sector, beginning with the $3 billion acquisition of WILD Flavors in 2014.

FDL operates three manufacturing facilities in the United Kingdom and will post projected sales of about $120 million in 2023, ADM said.

The company did not disclose financial details of the deal, but said it expects to close by the end of January.

“Our continued investment in our flavor portfolio helps strengthen our strategic work to build a global leader in nutrition,” ADM chief executive Calvin McEvoy said in a statement.

The move follows ADM’s acquisition of Revela Foods, a Wisconsin-based developer and manufacturer of dairy flavors and solutions.

Brokerage BMO Capital Markets said on Monday that while ADM is likely to face pressures on soybean crushing and ethanol margins in 2024, the company’s efforts to grow its portfolio through segments such as nutrition should improve earnings.