Cargill says it will purchase Archer Daniels Midland Company’s global chocolate business for US$440 million.
“This acquisition is a major milestone in Cargill’s chocolate growth strategy and will help us better serve our customers in North America and Europe,” said Bryan Wurscher, president of cocoa and chocolate North America.
“It will bring together great people with a deep passion and commitment to producing excellent chocolate. Our customers will benefit from a broader product portfolio, greater access to innovation and product development support.”
The transaction includes ADM’s three North American chocolate plants, located in Milwaukee (Wisconsin), Hazleton (Pennsylvania), and Georgetown (Ontario), and three in Europe: Liverpool (UK), Manage (Belgium) and Mannheim (Germany).
These new facilities will extend and complement Cargill’s existing chocolate footprint across North America, Europe, Asia and Brazil, and increase production capacity, particularly in North America.
Cargill’s product portfolio will also add ADM’s Ambrosia, Merckens and Schokinag brands.
Upon completion of the acquisition, the company will gain approximately 700 new employees.
The transaction is subject to regulatory approval in the US and the European Union.
It is expected to close in the first half of 2015.
