(Corrects currency in paragraph 1 to $136 million from euros)
July 7 U.S. agricultural commodities group
Archer Daniels Midland (ADM) said it is buying food
flavors and specialty ingredients company Wild Flavors for 2.2
billion euros ($3 billion) in cash and will assume about $136
million of net debt.
ADM, a specialist in oilseeds processing, corn processing
and agricultural services, said it will establish a new business
unit called Wild Flavors and Specialty Ingredients and expects
the deal to complete by the end of the year.
Reuters had reported in May that Illinois-based ADM was
among the bidders for Wild Flavors in a transaction valued at
1.5 billion euros.
Wild Flavors is the world's sixth-biggest flavor provider.
Hans-Peter Wild, son of founder Rudolf Wild, owns 65 percent of
the company, while private equity firm KKR owns 35
The company, headquartered in Zug in Switzerland, was
founded in Heidelberg in Germany in 1931 as a producer of
ingredients for non-alcoholic beverages.
About 20 years later, Wild Flavors started selling Libella,
Germany's first carbonated juice drink based only on natural
"Together, ADM and Wild Flavors will create one of the
leading flavor and specialty ingredient companies in the world,
with sales approaching $2.5 billion and significant room to
grow," ADM Chairman and CEO Patricia Woertz said in a statement
Barclays is acting as financial adviser to ADM. Skadden,
Arps, Slate, Meagher & Flom LLP is acting as legal adviser.
($1 = 0.7345 Euros)
(Reporting by Supriya Kurane in Bangalore; Editing by David