ADM completes acquisition of Eaststarch

Archer Daniels Midland Company (ADM) has completed the acquisition of certain assets of Eaststarch, which is ADM’s 50-50 joint-venture with Tate & Lyle. This deal was announced on 21 April.

ADM Corn Processing business unit president Chris Cuddy said: "This acquisition is an important expansion for ADM’s Corn business.

"In order to continue to diversify our global footprint, our team has done a great job pursuing opportunities for profitable growth in key demand regions.

"We continue to enhance our capabilities to serve customers around the world, and to create value for our shareholders."

Following the completion of this acquisition, ADM has now become the owner of corn wet mills in Bulgaria and Turkey, and owns a 50% stake in a wet mill in Hungary.

The facilities in Bulgaria, Turkey and Hungary put together have a daily grind capacity of approximately 200,000 bushels.

These facilities manufacture sweeteners and starches. The facility in Hungary also manufactures ethanol for beverage, industrial and fuel uses.

With the completion of this deal, Tate & Lyle now has complete ownership of a specialty-focused facility in Slovakia.

Tate & Lyle stated that it has also secured a cash consideration of €240m.

As part of this deal, ADM will supply crystalline fructose from its facility in Turkey to Tate & Lyle. Besides, ADM will serve as Tate & Lyle’s exclusive agent for the sale of liquid sweeteners and industrial starches.