Bloomberg: Archer Daniels Midland Nearing Deal To Buy Wild Flavors For $3.4 Bln

(RTTNews) - Agribusiness company Archer Daniels Midland Co. (ADM) is nearing a deal to acquire privately-held German flavors and ingredients company Wild Flavors GmbH in a deal valued at about 2.5 billion euros or $3.4 billion, according to a Bloomberg report on Thursday. A deal is expected to be announced over the next few days.

The proposed deal will enable Archer Daniels to diversify its business and meet the growing consumer demand for the use of natural materials in concentrates, colorings, and confectionery ingredients. The deal will reportedly be the largest acquisition by Archer Daniels.

Founded by Rudolf Wild in Heidelberg, Germany in 1931, Zug, Switzerland-based Wild Flavors is a producer of natural-flavor ingredients for non-alcoholic beverages. It is the world's sixth-largest flavor provider, and generated sales of 838 million euros in 2012.

Its portfolio includes full flavor and ingredient solutions for the beverage industry, known as the flavor system as well as individual components such as flavors and extracts, natural colors, concentrates, sweetening systems, as well as specialty ingredients, such as functional flavors.

Currently, Hans-Peter Wild, son of Rudolf Wild, owns 65 percent of Wild Flavors, while U.S. private equity giant KKR & Co. (KKR) owns 35 percent. KKR picked up the stake in January 2010.

Decatur, Illinois-based Archer Daniels is said to have outbid Japanese rival Ajinomoto Co, Inc. to clinch the deal for Wild Flavors. However, Ajinomoto still has an outside chance as a final decision is still to be made.

Archer Daniels is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural products. In May, Reuters had reported that Archer Daniels was among the bidders for Wild Flavors in a deal that could be valued at 1.5 billion euros.

ADM closed Thursday's regular trading session at 45.77, up $0.45% or 0.99% on a volume of 3.15 million shares.