Archer Daniels Midland Co.’s share price up, to acquire Wild Flavors GmbH in a 3-billion-dollar deal

Archer Daniels Midland Co. (ADM) made an official statement today, revealing that it is to purchase Wild Flavors GmbH in a deal valued at about 2.2 billion euros (3 billion dollars) cash. The acquisition is considered the largest one made by the U.S.-based company up to date.

The Chairman and Chief Executive Officer of ADM – Ms. Patricia Woertz said in the companys statement, which was cited by Bloomberg: “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.”

Currently, Archer Daniels Midland Co. is one of the biggest corn, soybeans, wheat and other crops dealers in the world. However, the most recent quarterly earnings of the company were affected by harsh winter weather in the U.S., which resulted in making it more vulnerable to the conditions at the agricultural commodities markets.

The takeover underlines the fact that the rivalry in this sector of the European market is increasing thanks to the fact that the economy has been marking a recovery recently.

As reported by the Financial Times, the Chief Executive Officer of Archer Daniels Midland Co. Ms. Woertz also said in the companys statement: “Together, we will be uniquely positioned to offer a broad range of customers . . . comprehensive systems-based solutions for food, beverage and personal care products. With our combined global networks, world-class research & innovation capabilities, Wild Flavors’ natural flavour systems, and ADM’s texture, nutrition and functional solutions, we will create an unmatched capability to respond to local consumer preferences.”

In April, the Chief Operating Officer of the company Mr. Juan Luciano revealed that Archer Daniels Midland Co. intends to invest more than 60% of its capital spending into assets located outside the companys home market.

Archer Daniels Midland Co. was 0.99% up to close at 45.77 dollars per share on July 3rd, marking a one-year change of +31.49%. According to the information published on CNN Money, the 11 analysts offering 12-month price forecasts for Archer Daniels Midland Co. have a median target of 48.00, with a high estimate of 52.00 and a low estimate of 39.00. The median estimate represents a +4.87% increase from the last price of 45.77.