CHICAGO, ILLINOIS, U.S. — Archer Daniels Midland Co. (ADM) announced on Oct. 13 that it has agreed to acquire Specialty Commodities Inc. (SCI), an originator, processor and distributor of ingredients, including nuts, fruits, seeds, legumes and ancient grains, for $170 million.
“One of the ways we are improving returns and reducing the volatility of our earnings is through the expansion of our specialty ingredients portfolio,” said Patricia A. Woertz, chairman and chief executive officer (CEO) of ADM. “One milestone in the ongoing process was the addition of Wild Flavors; the addition of Specialty Commodities Inc. is another step. Consumers around the world are demanding higher-quality, better-tasting, healthier foods with clean labels. We are continuing to add new product streams to our portfolio to enhance our capabilities to serve our customers as they respond to this demand.”
SCI was founded almost three decades ago and is headquartered in Fargo, North Dakota, U.S. The company works with a global network of suppliers to source natural and organic ingredients and distribute them to customers in the snack, ice cream, cereal, nutrition bar, health food, bakery, pet food and bird food markets.
“We are pleased that SCI will become part of ADM,” said Larry Leitner, founding partner and CEO of SCI. “SCI’s suppliers, colleagues and customers will benefit from ADM’s world-class innovation, supply-chain and manufacturing capabilities. And with our complementary geographies, similar business models and shared focus on quality and customers, we see a bright future for the business.”
SCI is majority owned by Goldner Hawn Johnson & Morrison. When the transaction closes, SCI will become part of ADM’s new Wild Flavors and Specialty Ingredients business unit. The new Wild Flavors and Specialty Ingredients business unit will include the Wild business and the following ADM product lines: specialty proteins, emulsifiers, edible beans, natural health and nutrition, soluble fiber, polyols, and hydrocolloids.
“This is another step as we continue to broaden the portfolio of ingredients we offer, enhance our knowledge and expertise, and focus on the quality of our products and the markets that matter most to our customers,” said Greg Morris, president, Wild Flavors and Specialty Ingredients.