ADM to acquire Probiotics International for £185m

Global food processing company Archer Daniels Midland (ADM) has signed an agreement to acquire UK-based probiotic supplements provider Probiotics International (PIL) as part of a deal valued at £185m, subject to customary adjustments.

The addition of PIL’s network to ADM’s existing health and wellness capabilities is expected to create a fully integrated probiotics and nutraceuticals business for the consumer and commercial markets.

ADM Health & Wellness president Vikram Luthar said: “ADM is already one of the world’s largest providers of human and animal nutrition solutions, and the acquisition of PIL will add to our extensive portfolio of products that promote health and wellness.

“We took a major step in this area last year with the addition of Biopolis, and then added to our capabilities with our personalised nutrition collaboration with Mayo Clinic, our joint development agreement with Vland Biotech, and our new enzyme lab in California.”

PIL is primarily engaged in the provision of Bio-Kult brand probiotic supplements for human wellness, along with various contract-manufactured products.

PIL commercial director Jonathan Sowler said: “PIL has created market-leading brands in the veterinary, equine and human health markets around the world, and we are delighted to join ADM’s Health and Wellness business.

“We very much look forward to building on this success.

“There are great synergies with ADM and Biopolis, especially in the area of research and development (R&D), and we plan to add to an already very exciting development pipeline to provide innovative, evidence-based products of the highest quality for people and animals.”

The deal will be subject to regulatory review and is currently expected to close in the third quarter of this year.