- €1.535 billion addition marks another major milestone in the execution of ADM’s strategic plan and portfolio transformation
- Addition of Neovia, a France-headquartered global provider of value-added animal nutrition solutions, offers geographic expansion on three continents as well as state-of-the-art innovation capabilities and a diversified product portfolio
Archer Daniels Midland Company (NYSE: ADM) announced today that it has
agreed to terms granting exclusivity in discussions to purchase Neovia,
a global provider of value-added animal nutrition solutions, with 72
production facilities and a presence in 25 countries, headquartered in
Saint-Nolff, Britanny, France. The 100 percent cash deal has an
approximate enterprise value of €1.535 billion, subject to customary
“The acquisition of global leader Neovia would represent a
transformative step for our Animal Nutrition business, and a major
strategic investment in France,” said ADM Chairman and CEO Juan Luciano.
“At ADM, everything starts with the farmer, and we are eager to deepen
our relationships with French farmers and French agriculture as we bring
together the resources, technologies and expertise of two great
companies. We look forward to working with them to leverage their global
presence, integrated value chain and world-class innovation to reach new
markets and new customers together.
“The acquisition of Neovia would be a major step as we continue to
execute the value creation strategy we first outlined in 2014,” Luciano
continued. “Neovia is a major global provider of animal nutrition
solutions, with significant operations in Western Europe, South and
Central America, and Southeast Asia. Combining Neovia’s global presence
and product and innovation expertise with our own growing Animal
Nutrition footprint and capabilities would create one of the world’s
leading animal nutrition providers, capable of offering complete
solutions for customers around the globe—and would be the ideal platform
for future growth.”
Founded in France in 1954, Neovia manufactures and sells a wide range of
nutrition solutions for the feed industry, operating in business lines
including premix and value-added services, pet care, additives and
ingredients, aquaculture and complete feed. The company, which is
currently majority owned by leading French agricultural cooperative
group InVivo, has about 8,200 employees. It has extensive innovation
capabilities, with 11 R&D centers in six countries. It had global sales
of €1.7bn in 2017, and, with very limited presence in the United States
and more than 75 percent of its sales coming from outside Western
Europe, the company’s footprint complements ADM’s.
“This transaction is a great opportunity for both Neovia and ADM to
establish what will be a global leader in animal nutrition solutions.
ADM will pursue partnerships with French cooperatives and reinforce its
relationships with the French agricultural world. At the same time and
in line with our strategy ‘2025 by InVivo’, the sale of Neovia will
enable us to accelerate our transformation by favoring investments in
our growth levers: agriculture, agribusiness & wine, and retail &
digital, in France and abroad,” declared Thierry Blandinières, CEO of
“This is an important addition, not only for our animal nutrition
business, but for our entire integrated Nutrition platform,” said Vince
Macciocchi, ADM’s senior vice president and president, Nutrition. “In
recent years, health and wellness trends in human nutrition—such as
clean-label, natural ingredients, and innovative solutions—are being
echoed in animal nutrition. With Neovia, we will have global
capabilities that span human and animal nutrition, expanding our reach
and enhancing internal efficiencies. From colors and flavors to enzymes
and bioactives, our new integrated nutrition platform will offer an
unparalleled array of ingredients and solutions to meet customer needs.”
Over the last four years, ADM has undertaken the most extensive
portfolio transformation in its 115-year history, moving closer to end
customers by adding capabilities in specialty and value-added products
and services. In its Animal Nutrition business, ADM has added premix and
aquaculture capabilities in Asia; built new, modern facilities in North
America; and moved into pet treats in 2017. Earlier this year, ADM
combined its human and animal nutrition businesses into a single
business unit that offers complete nutrition solutions.
Under French law, the signing of an acquisition agreement is contingent
upon informing and consulting with relevant employee representative
bodies. Subject to that process and regulatory approvals, the
acquisition is expected to close by the fourth quarter.
Lazard is acting as financial adviser to ADM. Baker McKenzie is acting
as legal advisor.
ADM will host a conference call and audio webcast today, July 2, at 8:00
a.m. U.S. Central time. A slide presentation will be available to
download prior to the call. To listen to the call or to download the
slide presentation, go to www.adm.com/webcast.
Replay of the call will be available for an extended period of time at www.adm.com/webcast.
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.
Neovia is a leading international player in animal nutrition. It has
several complementary business lines, including: premixes and
value-added services, including premium and super-premium pet food;
animal feed additives; nutritional and farming solutions for
aquaculture; complete food for livestock and horses; and analysis and
field support. The company is headquartered in Saint-Nolff, France, and
employs around 8,200 people across 25 countries.
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
approximately 31,000 employees serving customers in more than 170
countries. With a global value chain that includes approximately 500
crop procurement locations, 270 ingredient manufacturing facilities, 44
innovation centers and the world’s premier crop transportation network,
we connect the harvest to the home, making products for food, animal
feed, industrial and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company
Jackie Anderson, 312-634-8484