In May 2019, Archer Daniels Midland Company (NYSE: ADM) announced the completion of its acquisition of the Ziegler Group, a leading provider of natural citrus solutions, based in Europe. This investment to acquire Ziegler Group’s citrus ingredients portfolio provides the company with an opportunity to serve customers around the world with innovative and improved citrus solutions.
The acquisition is subject to receipt of various regulatory approval and is expected to close in the second quarter of 2019.
ADM is one of the world’s leading agricultural processors and food ingredient providers. The company produces products for industrial, food, animal feed, and energy uses. ADM is further paving its way to become a world-leading nutrition company providing the widest range of specialty ingredients and blends. It also creates consumer-preferred nutritional solutions through its customisable portfolio, which includes natural flavours and colours, plant-based proteins, and specialty ingredients such as hydrocolloids, lecithin, Omega-3 solutions, probiotics, and much more.
With the increase in the demand for healthy products with natural ingredients, particularly in the food and beverage sector, the manufacturers are seeking a way to improve the nutrient profile of their products. Citrus provides natural, clean-label, and reduced sugar attributes, along with great taste, which is the requirement of today’s health-conscious consumers, thus, making citrus a key ingredient for any nutrition portfolio.
This announcement was made by the company shortly after its acquisition of Florida Chemical Company, a US-based citrus flavour innovator. Leading R&D capabilities and global reach of ADM, combined with the comprehensive know-how of Ziegler and FCC, will result in the innovative and improved citrus solutions for food, beverage and fragrance customers around the globe, opening up tremendous growth opportunities for ADM and further enhance its position in the market. As citrus is one of the most used flavours in the food and beverage industry, its application in sectors like cosmetics and pharmaceuticals is also increasing, which demands the creation of a global citrus platform to provide a complete product line for the customers. This remains the key growth strategy of ADM. With this, the company is determined to continue the most ambitious portfolio transformation in its history, aiming to become a leading nutrition company.
Ziegler is a leader in producing high-quality natural citrus oils, extracts, concentrates, and compounds for different industries. The company makes use of proprietary cold concentration technologies to manufacture its products and further offers highest-quality citrus flavour innovations and solutions to the consumers. The company is based in Aufsess, in southern Germany, and has operations across Europe, the United States, and Japan. This merger will allow the company to offer its customers even more with ADM’s global reach, cutting-edge technologies, and extensive industry expertise.
For ADM, the buyout of WILD Flavors reinforces its foothold in the nutrition space, expanding the specialty ingredients portfolio- including vanilla, mint, and other flavours. Moreover, the buyout of Neovia, which took place in February 2019, enhanced its presence in the animal feed industry. Additionally, the ADM’s acquisition of Rodelle and Protexin and its joint development agreement with China-based biotech company, Qingdao Vland Biotech Group Co., Ltd., reflects its focus on improving its portfolio in the Nutrition space.
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