ADM has confirmed it will definitely be establishing a new business unit and advisory board following the acquisition of WILD Flavors, which it announced yesterday. The new unit will be called WILD Flavors and Specialty Ingredients and it is estimated to have revenues of about $2.5m per year.
“It will be a top flavour and specialty ingredients company from day one,” explained ADM ceo Patricia Woertz. “The new unit will include many of our ADM specialty ingredients so we are able to efficiently go to customers with the complete food system. The talents of the WILD Flavors team are essential to this business model.”
Woertz also said ADM will retain the key management and they will be part of the new unit leadership. There will also be a new advisory board for this unit, “which Dr Wild and Mike Ponder, CEO of ADM, will join,” she said.
In a speech following yesterday’s announcement, Woertz explained that the acquisition will be a growth engine for ADM. “It will enhance our research, innovation and marketing capabilities, it will accelerate our earnings growth – we think this is highly strategic and highly complementary to our existing business.”
She also noted that “rarely does an asset of this scale and quality become available in the ingredients space.”
The two companies are both very well positioned to tap into current consumer trends across the globe, including a demand for specialty ingredients, protein, a better use of natural ingredients and healthy foods as well as convenience foods, more flavors and more choice.
“That is why WILD really fits the bill for us – they create natural flavors and great tastes,” she said. “It is a global company with global reach, it has state of the art research and innovation centers (28 of them), it has the ability to reach into higher growth markets and in 2014 it is expected to post €1bn in sales. “
The two companies are a good fit culturally, she said, and they both have a big focus on raw materials.
The two also have strong distinctions that complement each other, she explained. “We are strong in food and they are strong in beverages. We are strong in North America and they are strong in Europe. We have good relations with bigger companies and they have good links with small and medium-sized companies.”
“We have the right amount of similarities and the right amount of differences,” she confirmed.
