ADM to expand flavor portfolio with acquisition of UK-based FDL

ADM (NYSE: ADM), a preeminent global player in human and animal nutrition, has reached a definitive agreement to acquire FDL, a UK-based frontrunner in developing and producing premium flavor and functional ingredient systems. The deal, enhancing ADM’s portfolio, showcases ADM’s continued ambition to emerge as a global leader in nutrition.

FDL’s Projected Sales and Market Presence

With projected sales of approximately $120 million in 2023, FDL operates three production facilities and two customer innovation centers in the United Kingdom. The company’s team of around 235, including 40 innovation specialists, has developed over 10,000 proprietary flavor formulations, significantly impacting the $900 billion European foodservice segment.

Strategic Synergy Between ADM and FDL

Calvin McEvoy, President of ADM’s Global Flavors, highlighted the strategic fit of FDL’s innovative formulation knowledge and strong customer base with ADM’s global flavor capabilities. The acquisition is expected to strengthen ADM’s foothold in key channels, particularly foodservice.

FDL’s CEO on the Partnership with ADM

Eric Beatty, CEO of FDL, expressed enthusiasm about the partnership, recognizing ADM’s comprehensive global nutrition and flavor capabilities. He anticipates new opportunities to enhance FDL’s portfolio of taste and nutrition solutions, contributing significantly to ADM’s diverse offerings.

ADM’s Growth in the Flavor and Nutrition Sector

Since acquiring WILD Flavors in 2014, ADM has consistently expanded its flavors portfolio, incorporating acquisitions in dairy, savory, citrus, and vanilla segments. The company has also globalized its flavor capabilities with strategic acquisitions and investments, including organic investments like its Pinghu, China, flavor production facility and the expansion of its Berlin flavor facility.

Closing Conditions and Transaction Timeline

The acquisition, subject to customary closing conditions, is anticipated to be completed by the end of January 2024. This strategic move marks another significant step in ADM’s journey to build a comprehensive global leader in the nutrition sector.