FBR Staff Writer Published 15 October 2014

US-based food processing company Archer Daniels Midland (ADM) has agreed to acquire natural and organic food producer Specialty Commodities (SCI) for $170m.

The transaction, subject to regulatory approval, will provide Specialty Commodities' suppliers, colleagues and customers with ADM's supply-chain and manufacturing capabilities.

Post completion, Specialty Commodities will become part of ADM's new WILD Flavors and Specialty Ingredients business unit. Its majority owner is Goldner Hawn Johnson & Morrison.

ADM chairman and CEO Patricia A. Woertz said: "One of the ways we are improving returns and reducing the volatility of our earnings is through the expansion of our specialty ingredients portfolio.

"Consumers around the world are demanding higher-quality, better-tasting, healthier foods with clean labels. We are continuing to add new product streams to our portfolio to enhance our capabilities to serve our customers as they respond to this demand."

Specialty Commodities processes and distributes healthy ingredients, including nuts, fruits, seeds, legumes and ancient grains for snack, ice cream, cereal, nutrition bar, health food, bakery, pet food and bird food producers.

Specialty Commodities founding partner and CEO Larry Leitner said: "SCI's suppliers, colleagues and customers will benefit from ADM's world-class innovation, supply-chain and manufacturing capabilities. And with our complementary geographies, similar business models, and shared focus on quality and customers, we see a bright future for the business."

Image: Specialty Commodities processes and distributes nuts, fruits, seeds, legumes and ancient grains. Photo: courtesy of tiverylucky / FreeDigitalPhotos.net.

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ADM to acquire Specialty Commodities for $170m