ADM to Sell Global Cocoa Business to Olam
16 December 2014 - 10:28AM
Business Wire
$1.3 billion transaction frees capital for
higher-return, less-volatile investments
Archer Daniels Midland Company (NYSE: ADM) today announced that
it has reached an agreement to sell its global cocoa business to
Olam International Limited (SGX: O32) for $1.3 billion, subject to
customary adjustments.
“We are continuing to actively manage our portfolio to create
shareholder value by improving returns and dampening the volatility
of our earnings,” said ADM Chairman and CEO Patricia Woertz. “This
transaction will allow us to redeploy capital to investments that
offer improved returns potential and less volatility than the cocoa
business, or distribute excess capital to shareholders, or a
combination of both.”
The sale encompasses ADM’s entire global cocoa business,
including processing facilities in Mississauga, Canada; Koog aan de
Zaan and Wormer, Netherlands; Mannheim, Germany; Ilhéus, Brazil;
Abidjan, Côte d'Ivoire; Kumasi, Ghana; and Singapore. Also included
are ADM’s buying stations in Brazil, Cameroon, Côte d'Ivoire, and
Indonesia, as well as the company’s deZaan and UNICAO brands.
The majority of the approximately 1,550 colleagues in ADM’s
cocoa business will transfer to Olam with the sale.
The proposed sale, which is contingent on customary regulatory
approvals, is expected to close during the second quarter of
2015.
This transaction does not impact the sale of ADM’s chocolate
business to Cargill, which is progressing as planned.
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
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
more than 33,000 employees serving customers in more than 140
countries. With a global value chain that includes more than 470
crop procurement locations, 285 ingredient manufacturing
facilities, 40 innovation centers and the world’s premier crop
transportation network, we connect the harvest to the home, making
products for food, animal feed, chemical and energy uses. Learn
more at www.adm.com.
Archer Daniels Midland CompanyMedia
RelationsJackie Anderson217-424-5413media@adm.com
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