DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced that it has sold
its 23 percent interest in Gruma, S.A.B. de C.V. (“Gruma”) and its
equity investments in related joint ventures for $450 million plus an
additional contingent payment of up to $60 million.
“We are pleased that we were able to reach an agreement with Gruma,”
said Ray G. Young, chief financial officer for ADM. “This sale is part
of our ongoing portfolio management actions to redeploy capital into key
strategic areas that will help drive higher returns in the future.”
Under the terms of the sale, ADM received $450 million up front and will
also receive up to $60 million in future contingent payments over the
next 42 months. The contingent payments are triggered based upon various
conditions, including: the increase in Gruma’s stock market price, over
the closing price of Gruma’s stock determined for purposes of the
transaction, at the end of the 42 month period; the difference between
the price of Gruma’s stock fixed for public offers made by Gruma and the
closing price; the acquisition, by any strategic investor of Gruma, of
15 percent or more of Gruma’s capital stock; or the percentage of
Gruma’s shares that are considered to be held by the public at any time.
While ADM has exited from its ownership position in Gruma and related
investments, ADM expects to maintain a healthy and strong commercial
relationship with Gruma globally. Bank of America Merrill Lynch was the
financial adviser to ADM in the transaction.
For more than a century, the people of Archer
Daniels Midland Company (NYSE: ADM) have transformed crops into products
that serve vital needs. Today, 30,000 ADM employees around the globe
convert oilseeds, corn, wheat and cocoa into products for food, animal
feed, industrial and energy uses. With more than 270 processing plants,
420 crop procurement facilities, and the world’s premier crop
transportation network, ADM helps connect the harvest to the home in
more than 160 countries. For more information about ADM and its
products, visit www.adm.com.
Archer Daniels Midland Company
Jackie Anderson, 217-424-5413