ADM to acquire 50% stake in Aston’s sweeteners and starches business

US-based food ingredient manufacturer Archer Daniels Midland Company (ADM) has agreed to acquire 50% equity stake in the sweeteners and starches business of Russia’s Aston Foods and Food Ingredients (Aston).

Established in 1997, Aston produces foodstuffs and ingredients, while it also exports agricultural goods and vegetable oils.

Financial details of the deal have not been divulged by both the companies.

As per the agreement, ADM will have a 50% ownership in Aston’s corn wet mills located in Ibred and Novlyanka regions in Russia.

The two facilities are said to be strategically located within the close proximity of some of the major customers in the Russian food and beverage industry.

ADM Europe, Middle East and Africa (EMEA) president Pierre Duprat said: “ADM has substantially added to our global sweeteners and starches capabilities with acquisitions serving the European Union, Middle East and North Africa markets, and now we are expanding to serve the growing Russian food and beverage industry.

“Aston is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly owned business grow.”

The transaction is expected to close by the second quarter of this year after obtaining approvals from the regulatory authorities.

ADM Corn Processing business president Chris Cuddy said: “This investment is the latest in a series of important additions and enhancements we have made to grow our global Corn business.

“Last year, we completed our acquisition of Chamtor, opening up access to key markets in Western Europe.

“In 2015 and 2016, we acquired corn facilities in Hungary, Bulgaria, Turkey, and Morocco, then launched a significant expansion effort to enhance our capabilities in those businesses.”

ADM’s latest investment in Russia builds on its previous growth in Europe, Middle East, and North African markets.

The company has also strengthened its position in the Asian region with its sweetener facility in China’s Tianjin region and several animal feed plants.