ADM Invests in Expansion of Pet Food Business with Purchase of Crosswind Industries
• Addition of five new facilities, including four extrusion plants and a highly efficient packaging facility, significantly increases company’s capabilities in fast-growing pet food market
CHICAGO, Jan. 10, 2017—Archer Daniels Midland Company (NYSE: ADM) announced today that it has signed an agreement to acquire Crosswind Industries, Inc., a Kansas-based producer of dry-expanded, dual-texture, semi-dry and semi-moist treat products for pets.
“The global pet food industry represents a strong opportunity for strategic growth, especially for a company with the global resources of ADM,” said Brent Fenton, president of ADM’s Animal Nutrition business. “ADM already sells more than 50 ingredients and commodities that are used by more than 70 percent of all pet food companies in North America. Now, we’re taking the next step with the addition of Crosswind Industries to our global network. With five production facilities and a wide range of successful products, Crosswind represents a strong opportunity to expand our capabilities, and a great fit not just with the Animal Nutrition business, but across ADM’s wider portfolio of ingredients, colors and flavors for pets. We’re looking forward to combining Crosswind’s operations and products with our own to provide customers an even broader array of products and services.”
Crosswind Industries is an industry leader in the manufacture of contract and private label pet treats and foods, as well as specialty ingredients. Its 300 employees operate five processing lines across five Kansas facilities, with nine “ready for retail” packaging lines.
“Since early 2015, we have announced or completed several organic growth and improvement projects for our Animal Nutrition business across the U.S., as well as overseas,” Fenton continued. “We’ve also been active on the M&A front, with the acquisition of Lyrco Nutrition and the creation of our Alliance Liquid Feeds joint venture. Now, with the addition of Crosswinds, we are continuing our efforts to grow our business so as to set the industry standard and ensure that we are continuing to meet growing customer needs for quality animal nutrition products.”
ADM anticipates closing the deal in the coming weeks.
Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.