$1.3 billion transaction frees capital for higher-return, less-volatile investments
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today announced that it has
reached an agreement to sell its global cocoa business to Olam
International Limited (SGX: O32) for $1.3 billion, subject to customary
“We are continuing to actively manage our portfolio to create
shareholder value by improving returns and dampening the volatility of
our earnings,” said ADM Chairman and CEO Patricia Woertz. “This
transaction will allow us to redeploy capital to investments that offer
improved returns potential and less volatility than the cocoa business,
or distribute excess capital to shareholders, or a combination of both.”
The sale encompasses ADM’s entire global cocoa business, including
processing facilities in Mississauga, Canada; Koog aan de Zaan and
Wormer, Netherlands; Mannheim, Germany; Ilhéus, Brazil; Abidjan, Côte
d'Ivoire; Kumasi, Ghana; and Singapore. Also included are ADM’s buying
stations in Brazil, Cameroon, Côte d'Ivoire, and Indonesia, as well as
the company’s deZaan and UNICAO brands.
The majority of the approximately 1,550 colleagues in ADM’s cocoa
business will transfer to Olam with the sale.
The proposed sale, which is contingent on customary regulatory
approvals, is expected to close during the second quarter of 2015.
This transaction does not impact the sale of ADM’s chocolate business to
Cargill, which is progressing as planned.
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.
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve the vital
needs of a growing world. Today, we’re one of the world’s largest
agricultural processors and food ingredient providers, with more than
33,000 employees serving customers in more than 140 countries. With a
global value chain that includes more than 470 crop procurement
locations, 285 ingredient manufacturing facilities, 40 innovation
centers and the world’s premier crop transportation network, we connect
the harvest to the home, making products for food, animal feed, chemical
and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company