ADM nears agreement to purchase Wild Flavors

US-based food processing company Archer-Daniels-Midland (ADM) is reportedly close to a €2.5bn ($3.4bn) deal to acquire Swiss flavour manufacturer Wild Flavors.

Bloomberg reports that even though a final decision hasn’t been made, the deal is expected to be announced shortly. ADM has already outbid Japanese rival Ajinomoto to acquire the company.

The deal will help ADM to expand its footprint in overseas markets for food and beverages.

Based in Zug, Switzerland, Wild Flavors was established in 1931 as a producer of ingredients for non-alcoholic beverages.

The world’s sixth-biggest flavour provider, the company has manufacturing facilities across Europe, the Middle East, Asia and the Americas.

In 1951, Wild Flavors introduced Libella, which was the first carbonated juice drink in Germany based only on natural ingredients.

ADM president and COO Juan Luciano was quoted by Bloomberg as saying that the firm plans to invest 60% of its capital expenditures into assets outside the US.

"We are still underrepresented in the rest of the world," Luciano said.