Global grains merchant ADM (Archer Daniels Midland) has continued on the acquisition trail as it seeks to widen its capabilities, picking up London-headquartered ingredients firm FDL for an undisclosed price.
FDL is expected to generate revenues of about $120m (£95m) in 2023 and operates from three production facilities and two customer innovation centres across the UK. It employs more than 200 staff and makes a range of flavours and fillings, bakery pastes and glazes, fruit compotes and granolas, juices and blends, as well as functional energy and vitamin ingredients for the fmcg and foodservice industries.
It follows another deal earlier this week as ADM snapped up Revela Foods in Wisconsin to expand its capabilities into the dairy category.
“Our ongoing investments to add to our flavours portfolio are helping power our strategic work to build a global leader in nutrition,” said Calvin McEvoy, ADM’s president of global flavours.
“FDL’s innovative and agile formulation knowledge, deep end-use applications expertise, and strong customer base make them a great addition to ADM’s global flavour capabilities. We are incredibly impressed by the FDL team, and we believe both companies will benefit from each other as we work to expand our reach in key channels, particularly foodservice.”
FDL CEO Eric Beatty added: “We are excited to enter into this agreement with ADM. They’re an ideal partner for us, with global nutrition and flavour capabilities that will provide new opportunities to strengthen FDL’s portfolio of taste and nutrition solutions.
“In turn, the FDL team looks forward to helping add to ADM’s broad offerings with our diverse portfolio of flavour and functional ingredient systems, IP and capabilities, as well as the entrepreneurial spirit and innovativeness of human talent that has enabled FDL to become a differentiated market leader today. ADM is synonymous with the best in animal and human nutrition, and together, we look forward to delivering new and innovative ingredient solutions to our global customer base in the food and beverage industry.”
ADM has been diversifying its traditional grain handling business into flavours and nutrition foods in recent years.
Since acquiring Wild Flavors in 2014, ADM has added multiple new offerings to its flavours portfolio through acquisitions, including savoury via Eatem Foods; citrus via Florida Chemical Company and Erich Ziegler Citrus; and vanilla via Rodelle. The company has also expanded its flavours capabilities globally with acquisitions such as Flavor Infusion South America; organic investments in its Pinghu, China, flavour production facility and the expansion of its Berlin flavour facility; and its growing network of innovation centres spanning Europe, Asia, Latin America and North America.
The FDL acquisition is subject to customary closing conditions and is expected to complete by end of January 2024.
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