Archer Daniels Midland Company to buy Specialty Commodities

Archer Daniels Midland Company (ADM) has signed an agreement to purchase Specialty Commodities (SCI), the originator, processor and distributor of healthy ingredients for $170m.

SCI primarily processes and distributes food ingredients such as nuts, fruits, seeds, legumes and ancient grains. It was founded three decades ago and distributes natural and organic ingredients to customers in the snack, ice cream, cereal, nutrition bar, health food, bakery, pet food and bird food markets.

Speaking about the strategic investment, ADM chairman and CEO Patricia A Woertz said: "One of the ways we are improving returns and reducing the volatility of our earnings is through the expansion of our specialty ingredients portfolio.

"One milestone in the ongoing process was the addition of WILD Flavors; the addition of Specialty Commodities Inc is another step. Consumers around the world are demanding higher-quality, better-tasting, healthier foods with clean labels. We are continuing to add new product streams to our portfolio to enhance our capabilities to serve our customers as they respond to this demand."

SCI founding partner and CEO Larry Leitner said: "SCI’s suppliers, colleagues and customers will benefit from ADM’s world-class innovation, supply chain and manufacturing capabilities. And with our complementary geographies, similar business models, and shared focus on quality and customers, we see a bright future for the business."

Goldner Hawn Johnson & Morrison is a majority shareholder of SCI. After the transaction closes, SCI will become part of ADM’s new WILD Flavors and Specialty Ingredients business unit.

WILD Flavors and specialty ingredients president Greg Morris said: "This is another step as we continue to broaden the portfolio of ingredients we offer, enhance our knowledge and expertise, and focus on the quality of our products and the markets that matter most to our customers."

The transaction is subject to regulatory approval and is expected to close in the coming weeks.

---

Image: SCI processes and distributes food ingredients like nuts, fruits, seeds, legumes and ancient grains. Photo: courtesy of tiverylucky / freedigitalphotos.net.