- Acquisition includes equity stake in farmer cooperative in Madagascar, part of the most extensive vertically integrated supply chain in the vanilla industry
Archer Daniels Midland Company (NYSE: ADM) announced today that it has
reached an agreement to acquire Rodelle Inc., a premium originator,
processor and supplier of vanilla products.
Rodelle, founded in 1936 and based in Fort Collins, Colorado,
originates, processes and sells premium vanilla products, including
organic and traditional extracts, beans, alcohol-free flavor and paste.
The company also sells non-vanilla products, including flavorings,
extracts, spice blends and organic spices. Rodelle provides ingredient
solutions to major food and beverage makers, as well as directly to
consumers, with a premium retail brand that can be found in the baking
aisle of most grocery stores in North America. The company’s sales last
year were approximately $40 million.
Rodelle’s supply chain is unique among major vanilla processors. In
Madagascar, the company owns a stake in Federation Sahanala Vanille — a
joint venture between Rodelle and a partnership of local associations
that now includes more than 2,100 registered vanilla farmers — and is
capable of producing industry-leading volumes of certified organic
vanilla. Rodelle also has a strategic partnership with Gourmet Gardens,
providing sourcing of vanilla in Uganda. By removing the third parties
that are typical in other vanilla processor supply chains, Rodelle is
able to offer competitive pricing and a reliable supply.
“With the acquisition of Rodelle, we are continuing to grow our value
chain by enhancing what is already one of the most comprehensive
portfolios in the flavor industry,” said Scott Olstad, president of
ADM’s North American WILD Flavors business. “Not only is vanilla one of
the most popular and enduring flavors, but Rodelle’s integrated supply
chain will allow us to offer an unparalleled range of certified organic
and natural vanilla ingredients for today’s health-conscious consumers.
The addition of Rodelle will give us immediate capabilities in both the
retail and commercial vanilla markets, and we see significant
opportunities to expand the business. We’re looking forward to working
with the great Rodelle team to help build on their impressive success.”
Rodelle has about 70 full-time employees. The company operates a
65,000-square-foot extraction and processing facility in Fort Collins;
the modern plant was built in 2008 and expanded in 2014, and includes
labs for testing and R&D.
“This acquisition represents another important step in our strategy to
create shareholder value,” said Vince Macciocchi, ADM’s senior vice
president and president, Nutrition. “Rodelle will be a key part of our
integrated human and animal Nutrition business — a business that we are
focused on growing. Earlier this summer, we announced two important
additions to our Nutrition business unit: Neovia, a global leader in
value-added animal nutrition products, and Probiotics International
Limited, a U.K.-based provider of probiotic supplements for human, pet
and production animal use. With these and other transactions, we are
strengthening our position as the go-to provider for nutrition customers
around the globe, and we are excited about the benefits for customers
and shareholders alike.”
“We are extremely excited to have reached this agreement, and look
forward to joining the ADM team and contributing Rodelle’s expertise in
vanilla products to another well-established flavoring industry
company,” said Joe Basta, Rodelle co-founder. “The Rodelle brand and our
loyal customers will benefit greatly from ADM’s technical expertise and
commercial capabilities. The core of our business will remain unchanged,
and our customers can expect the high-quality vanilla and baking
ingredients they have relied on for over 80 years.”
“We see a natural synergy between Rodelle’s vertically integrated supply
chain that brings consumers closer to vanilla farmers and ADM’s global
reach and technical expertise in the flavor and food ingredient
industry,” added Rodelle co-founder Dan Berlin. “In joining forces with
ADM, Rodelle will be able to leverage even more value for our customers,
employees, farmers and shareholders."
ADM anticipates completing the transaction, which is subject to
regulatory approval, in the third quarter.
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
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