ADM to acquire remaining stake in Toepfer
Company announces three significant actions in portfolio management
Archer Daniels Midland Company announced three significantactions in the company’s ongoing portfolio management: the acquisition of theremaining stake of Alfred C. Toepfer International GmbH, an agreement to sellthe company’s South American fertilizer business, and pursuit of the sale of thecompany’s chocolate business.
“We are committed to ongoing portfolio management to realize value from our businesses and to deploy our capital where it can best improve returns,” said ADM Chairman and CEO Patricia A. Woertz. “The actions we are announcing today are results of this continuing process. Each of these transactions will help ADM continue to improve returns and create shareholder value.
“These actions complement recent demand-driven strategic investments, such as our $250 million high-value protein facility in Brazil,” Woertz added. “We are taking action to realize returns today and positioning ourselves for continuing profitable growth around the globe in the future.”
ADM will acquire the remaining 20 percent minority stake of Alfred C. Toepfer International for €83 million (US$114.7 million), representing about 1.1x net book value. The proposed transaction, which is occurring through the exercise of a put agreement by Union InVivo, will be subject to customary regulatory approvals. Since 2002, ADM has owned 80 percent of Toepfer; InVivo has held the remaining 20 percent since 2010.
“Toepfer has an important presence in critical origination areas as well as growing destination markets,” said Woertz. “For years, ADM has benefitted from our investment in Toepfer. Now, full ownership will allow us to strengthen this business and fully integrate it into ADM’s global origination network.”
InVivo will remain a strategic business partner for ADM in Europe.
ADM also has signed an agreement to sell its fertilizer business in Brazil and Paraguay to The Mosaic Company for $350 million. The transaction consists primarily of five ADM-owned blending facilities in Brazil and Paraguay. The purchase price includes $150 million in working capital. As part of the transaction, ADM will purchase fertilizer from Mosaic after the closing and will continue to supply certain fertilizer customers in Brazil and Paraguay. The proposed sale will be contingent on customary regulatory approvals.
And, ADM will pursue the sale of its chocolate business, while retaining the majority of its cocoa press operations. The company has engaged advisers to facilitate the sale process. ADM has chocolate manufacturing operations in Hazleton, Pa.; Milwaukee, Wis.; Georgetown, Ontario; Liverpool, U.K.; Manage, Belgium; and Mannheim, Germany.