ADM to acquire Brazilian oilseeds facilities from Algar Agro

Global food processing company Archer Daniels Midland (ADM) has reached an agreement to buy certain oilseeds assets of Brazilian company Algar Agro, for an undisclosed sum.

Under the deal, ADM will acquire Algar Agro’s oilseeds processing facilities in Uberlândia in the state of Minas Gerais, and Porto Franco in Maranhão.

The acquisition of Algar Agro plants is expected to further strengthen ADM’s position in Brazilian meal and bottled oil markets.

ADM Oilseeds business senior vice-president and president Greg Morris said: “ADM is already the most diversified oilseeds processor in the world, and now we are once more expanding our capabilities to help meet growing global demand.

“The acquisition of Algar Agro’s crush and refinery plants in Minas Gerais and Maranhão strengthens our position in key Brazilian demand regions and continues our strategic global growth.

“We’ve recently launched our new oilseeds joint venture with Cargill in Egypt, and we have completed several enhancements to our European and North American processing operations.”

The purchase of Algar Agro assets will also allow ADM to access an extensive network of origination and storage silos throughout northeastern and southeastern Brazil.

Algar Group CEO Luiz Alexandre Garcia said: “This deal represents an important step towards the implementation of Algar Group’s portfolio and capital allocation strategy. In the Agribusiness sector, we are exiting the soybean crushing and trading segment and focusing on grains production (Algar Farming).”

ADM currently operates soy processing plants in Rondonópolis, Campo Grande, Ipameri, Joaçaba and Uberlândia, as well as a sunflower plant in Campo Novo dos Parecis and a network of storage facilities with a total capacity of 2.2 million metric tonnes.

The company also produces and sells the Concórdia, Corcovado, and Vitaliv brands of cooking oils.

Completion of the deal is subject to Brazilian regulatory approval and is expected to take place by the end of this year.

Upon completion, nearly 400 employees of Algar Agro will be transferred to ADM.