July 16, 2014
U.S.-based Archer Daniels Midland (ADM) has beat a field of rival bidders to acquire Wild Flavors which produces flavorings for cereals, ice cream, dairy, and confectionary items for $3.1 billion from the U.S.-based private equity firm Kohlberg Kravis Roberts and Dr. Hans-Peter Wild. ADM is expanding its presence into higher value sectors and states that the natural ingredient and flavoring sector is one of the fastest growing segments in both developed and emerging markets. After the acquisition, ADM and Wild Flavors combined is forecast to see global sales of $2.5 billion with additional further growth expected. The deal comes amid a series of moves by global players to expand beyond commodities up the production chain in order to gain access to higher margins.
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