ADM Significantly Expands Pet Treat and Supplement Capabilities with Planned Acquisition of Majority Stake in PetDine, Pedigree Ovens, The Pound Bakery

P4 Companies’ extensive customer base and full spectrum of customized formulations and products, combined with ADM’s global capabilities, further enhance both companies’ abilities to meet growing global demand for high-quality, nutritious pet treats and supplements.

CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM), a global leader in human and animal nutrition, announced today that it has reached an agreement to acquire a 75% ownership stake in PetDine, Pedigree Ovens, The Pound Bakery and NutraDine (P4 Companies), premier providers of private label pet treats and supplements. The transaction values the four enterprises in their entirety at approximately $600 million, and ADM will acquire 75% of the equity, subject to customary adjustments.

“We’re continuing to advance our growth strategy and transform our company with targeted investments that expand our capabilities in large, high-growth segments, including pet nutrition – a key focus of our growing animal nutrition business,” said Vince Macciocchi, president of ADM’s Nutrition business. “Annual global sales of pet food total $110 billion, forecast to grow to $140 billion by 2026 – with pet treats an even faster-growing category. We’ve grown to meet that demand, from the construction of new production facilities, to the additions of pet treat and food provider Crosswind and Neovia’s global pet nutrition business, to the opening of our industry-leading Animal Nutrition Technology Center in Decatur. Now, we’re taking the next step in our strategic journey with a majority investment in P4. We’re excited by this agreement, which we expect to exceed our hurdle rates and financial return targets as we partner with an innovative, high-growth business with a great track record of working closely with customers around the globe to develop and produce best-in-class pet products.”

With more than 300 employees, P4 Companies provides a complete range of highly customized pet treat and supplement products to more than 650 customers in 15 countries. Their offerings include baked treats, semi-moist treats, long goods, blends, unique proteins, soft chews, liquids and powders, many of which are developed to meet the demand for clean labels. P4 has delivered strong revenue and profit growth in recent years, and has invested in new product lines as well as expanded its production capacity.

ADM will also acquire P4’s 300,000+ square feet of state-of-the-art production and innovation facilities in Illinois and Colorado. In addition, the agreement includes a put/call option under which the parties could agree for ADM to purchase the remaining 25 percent at an agreed-upon market price in the coming years.

“As a group, our companies PetDine, Pedigree Ovens and The Pound Bakery, have become clear leaders in the pet supplement and treat space,” said Preston Munsch, CEO, PetDine. “Through innovation, R&D and manufacturing expertise, we have become important strategic partners to brands around the world. Through this new and exciting partnership with ADM, we will be able to advance our customers’ lead positions in the pet industry even further. Through their extensive list of ingredients combined with their Animal Nutrition Technology Center and worldwide resources, we are excited to merge our knowledge and expertise to continue to be innovative leaders in the pet industry.”

“ADM’s global resources — from ingredient supply chain, transportation and their emerging pet nutrition platform — are what we were looking for in a partner,” said Kurt Stricker, owner, Pedigree Ovens. “We are excited to continue our strong growth path together.”

“Joining the ADM family gives us the ability to elevate and expand our product offerings to our customers and continue to support their ideas and growth,” said Lexie Berglund, president, The Pound Bakery.

Like ADM, P4 has shown a strong commitment to sustainable practices; in 2020, they announced that their Harvard, Illinois, production facility was now powered with solar power, with the capacity to offset almost 1,500 tons of greenhouse gas emissions annually.

“Two years ago, ADM identified the humanization of pets – owners who want to provide their companion animals with the same kind of clean, simple, healthy products they eat themselves – as an important growth trend,” Macciocchi continued. “This partnership positions ADM perfectly to continue to meet those needs. We’re excited to partner with the great P4 team, and we look forward to collaborating with them to combine their best-in-class customized solutions with ADM’s extensive pantry of ingredients, natural colors, and flavors; application development expertise; rapid prototyping and innovation capabilities; and global go-to-market footprint.”

The proposed transaction is subject to regulatory approvals, and is expected to be completed in the coming weeks.

Forward-Looking Statements

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.

About ADM

At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at www.adm.com.

Source: Corporate Release

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ADM Media Relations
Jackie Anderson
media@adm.com
312-634-8484

Source: ADM