Archer Daniels Midland (ADM) has signed an agreement to acquire the remaining 50% stake in Gleadell Agriculture, making it the sole owner.
Currently, Gleadell Agriculture is jointly owned by ADM and French cooperative InVivo, including Gleadell’s 100% owned subsidiary Dunns (Long Sutton).
Following the acquisition, ADM will merge Gleadell and Dunns with its destination marketing business ADM Arkady and its combinable crop origination business ADM Direct UK.
After the merger, the entity will become ADM Agriculture, which is expected to bolster ADM’s footprint across the UK.
The deal will boost ADM’s origination, storage and destination marketing capabilities in the UK. It will also be able to serve as a trading partner for more farmers and customers.
Set up in 1880, Gleadell Agriculture is a supplier of combinable crops to feed compounders, UK millers and other consumers. It also exports grains, oilseeds and pulses to EU markets.
The firm sources crops directly from UK farmers and supplies certified seed and fertilisers.
Among its core assets are port storage and ship loading operations, as well as pulse and agricultural seed processing and storage.
ADM president of global trade Gary McGuigan said: “With significant storage and processing capability and a longstanding reputation for being a safe and trusted trading partner, Gleadell and Dunns will be great additions to our business in the UK.
“We are excited to expand our capabilities, not only to continue our strategic growth but also to support our farmers and our customers as they work to address fast-growing consumer demand.”
Following regulatory review, the transaction is expected to be completed in the first quarter of 2019.
This week, ADM signed a long-term distribution partnership with Thailand-based tapioca starch producer General Starch.
Earlier this month, ADM also signed an agreement to acquire Florida Chemical Company (FCC), a part of Flotek Industries that specialises in citrus-based flavours and fragrances.
