Cargill to acquire ADM’s chocolate business

Cargill will acquire Archer Daniels Midland Company’s (ADM) global chocolate business in a deal valued at $440m.

The purchase will make Cargill the complete owner of ADM’s three North American chocolate plants in Milwaukee, Hazleton and Georgetown, and three plants in Europe in Liverpool, Manage and Mannheim.

The acquisition will help Cargill increase its production capacity, and extend and complement Cargill’s existing chocolate footprint across North America, Europe, Asia and Brazil.

Cargill Cocoa and Chocolate North America president Bryan Wurscher said, "This acquisition is a major milestone in Cargill’s chocolate growth strategy and will help us better serve our customers in North America and Europe.

"It will bring together great people with a deep passion and commitment to producing excellent chocolate. Our customers will benefit from a broader product portfolio, greater access to innovation and product development support."

The company said that the deal would help in making available broader product ranges to support the long-term needs of the chocolate market.

The acquisition, which is expected to close in the first half of 2015, will also add ADM’s Ambrosia, Merckens and Schokinag brands to Cargill’s portfolio. The company will also gain about 700 employees as part of the deal.

Cargill Cocoa and Chocolate EMEA and Asia president Jos de Loor said, "Cocoa and chocolate products have been key contributors to Cargill’s business since 1979.

"We continue to invest strongly in the development of our own facilities and people, and we welcome the opportunity to embrace these new operations and further build on our success together."