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Archer Daniels Midland Company (ADM), a global company in food-grade proteins which markets numerous health and nutrition products announced that it is acquiring WILD Flavors, which is one of the world’s leading suppliers of natural ingredients to the food and beverage industry on July 7, 2014 at Decatur, giving ADM the ability to offer food and beverage companies a comprehensive suite of systems to enhance and improve their products.
In an all-cash transaction valued at approximately €2.3 billion enterprise value, ADM will pay €2.2 billion to WILD Flavors shareholders Dr Hans Peter Wild and funds affiliated with Kohlberg Kravis Roberts & Co. L.P. and assume approximately €0.1 billion of net debt. The transaction is contingent on regulatory approvals and is expected to close by year end.
“This acquisition expands ADM’s ability to serve customers’ evolving needs today and well into the future,” said ADM Chairman and CEO Patricia Woertz. “Natural flavor and ingredients is one of the largest and fastest-growing consumer trends in both developed and emerging markets, and WILD Flavors is the world’s leading provider of natural flavor systems to the food and beverage industry.”
WILD Flavors, with more than 3,000 customers worldwide and estimated 2014 net revenues of about €1 billion, offers food and beverage companies full flavor and ingredient solutions known as flavor systems and fruit juice concentrates and blends, as well as other food and beverage ingredients, including natural flavors and extracts, mint oils and flavors, colors from natural sources, sweetening systems, seasonings, specialty ingredients, taste modifiers, and fermentation technologies.
Dr Hans Peter Wild, chairman of WILD Flavors said, “I am very pleased by ADM’s acquisition of WILD Flavors and the future business we will build together. WILD Flavor’s unique natural flavors strength and total systems approach will create a very strong and positive development platform within ADM for our customers as we continue to drive innovation in the food and beverage industry. With the strong financial resources, and expanded customer base, product offering and global footprint, I am confident WILD Flavors will be well-positioned for growth.”
Johannes Huth, member and head of KKR Europe, Africa and Middle East operations, said: “WILD Flavors represented for KKR the opportunity to partner with an innovative family entrepreneur in developing a high-quality, R&D driven, Germany-based Mittelstand business. The partnership was tailored to the family ownership and the vision of Dr Wild to develop WILD Flavors into a globally integrated producer of flavors and flavor systems. The substantial growth and global expansion of WILD Flavors over these past years helped make the company an attractive and valuable partner for an industry-leading global company like ADM.”