Agriculture giant Archer Daniels Midland is ending 2023 with two major acquisitions as it aims to gain a bigger foothold in the flavors and ingredients categories.
ADM announced earlier this week that it had reached the following agreement: Buy Dairy Flavor Manufacturer Revela Foods and UK-based functional materials manufacturer FDL. Financial terms of either transaction were not disclosed.
With sales of $240 million this year, Revela Foods is a leader in the dairy ingredient space. The company operates three production facilities in the Midwest that use enzyme technology to make dairy flavors for a variety of foods, from snacks to sauces to desserts. ADM said in a press release that the Revela acquisition is expected to close in early 2024.
“ADM has a strong presence in the savory flavor space in North America, and we are working with the amazing Revela team to expand our opportunities there, combining their technology and innovation with our global capabilities to deliver unparalleled We’re excited to enhance our range of ingredients and products to provide a complete solution for customers seeking great flavor and clean label,” Calvin McEvoy, ADM’s president of global flavors, said in a statement. Ta.
FDL will also further propel the agribusiness giant into the fragrance sector. ADM says the company has developed more than 10,000 unique flavor formulations. FDL works to help formulators infuse ingredients into new products. vanilla, menthol etc.. The UK-based company operates three facilities in its home country and has projected sales of $120 million in 2023. According to a press release announcing the deal, FDL also has a strong presence in the food service sector in Europe.
“FDL’s innovative and agile formulation knowledge, deep end-use application expertise and strong customer base make it a great addition to ADM’s global flavor capabilities,” McEvoy said in a statement.
ADM said the acquisition of FDL is expected to close in January.
The companies will acquire more of ADM’s efforts to become a leader in the field as economic headwinds slow M&A activity in the raw materials sector.
In its 2024 Ingredient Trend Forecast, ADM predicts that bold colors and flavors, as well as a growing focus on good-for-you properties and affordability, will define new products launched in the food and beverage space next year. did. ADM is also leveraging new technology capabilities to enhance ingredient formulations in the gut health space through its partnership with Brightseed. Both companies use AI to study the molecular interactions between plants and the microbiome to assess the nutritional value of foods.