Archer Daniels Midland Company (NYSE: ADM) announced that it had reached an agreement to acquire Florida Chemical Company (FCC), a division of Flotek Industries (NYSE: FTK) specializing in citrus-based flavors and fragrances, and one of the world’s largest providers of citrus oils and ingredients.
“ADM is already a leader in natural flavors for food and beverages, offering a wide variety of high-value products and solutions in areas such as vanilla and mint, and this acquisition will place us in a leadership position for citrus flavors as well,” said Vince Macciocchi, president of ADM’s Nutrition business unit. “Citrus is one of the fastest-growing flavor categories, and the single most important taste profile for beverages, and no one in North America does citrus better than Florida Chemical Company.”
Founded in 1942, FCC has provided customers with premium citrus ingredients for more than three quarters of a century. Based in Winter Haven, Florida, the company produces a wide range of high-value citrus flavor ingredients, specialty terpenes and formulated products primarily for the flavor, fragrance and consumer products markets. Their innovative, high-quality on-trend products match consumer preferences for natural, clean label and reduced sugar foods and beverages. FCC products include:
- Individual citrus flavor materials and essential oils, including customized flavor blends;
- Flavor enhancers for grapefruit and other citrus; and
- Citrus flavor modifiers specifically targeted to improve the quality and taste of food and beverages sweetened with natural or artificial sweeteners.
“With the acquisition of WILD in 2014, ADM began the journey to become the world’s leading nutrition company,” Macciocchi continued. “Starting with the foundation of a leading global flavor company and our specialty ingredients portfolio, we’ve vastly expanded our capabilities with additions like the savory flavors of Eatem Foods, the plant proteins from Harvest Innovations, probiotics from Biopolis and Protexin, and Rodelle’s premium vanilla ingredients. The result is great for our customers and our shareholders: No other company in the world can match the expertise, innovation, products and solutions of ADM – and we’re still growing.”
“ADM has long been an admired industry innovator whose global nutrition portfolio capabilities are second-to-none. Florida Chemical’s citrus expertise, together with our combined leadership in research and development, will allow us to strategically accelerate and expand our diverse offering to a wide and growing customer base. Additionally, I am pleased that we will continue our strong relationship with Flotek through both a long-term supply agreement and through the joint pursuit of next-generation chemistry technologies for the energy and agriculture industries,” said Josh Snively, president of Florida Chemical and Flotek’s executive vice president of operations.
The deal, which requires regulatory approval, is expected to close in the first quarter of 2019. When the transaction is complete, FCC’s approximately 75 employees will transfer to ADM.