ADM to acquire Florida Chemical Co.
Transaction set to close in early 2019.
January 15, 2019
Archer Daniels Midland Co. will acquire Florida Chemical Co. (FCC), a division of Flotek Industries specializing in citrus-based flavors and fragrances and one of the world’s largest providers of citrus oils and ingredients.
The deal, which requires regulatory approval, is expected to close in the first quarter of 2019. When the transaction is complete, FCC’s approximately 75 employees will transfer to ADM.
“ADM is already a leader in natural flavors for food and beverages, offering a wide variety of high-value products and solutions in areas such as vanilla and mint, and this acquisition will place us in a leadership position for citrus flavors as well,” said Vince Macciocchi, president of ADM’s Nutrition business unit. “Citrus is one of the fastest-growing flavor categories, and the single most important taste profile for beverages, and no one in North America does citrus better than Florida Chemical Co.”
Founded in 1942, FCC produces a wide range of high-value citrus flavor ingredients, specialty terpenes and formulated products primarily for the flavor, fragrance and consumer products markets. Their products match consumer preferences for natural, clean label and reduced sugar foods and beverages. FCC products include:
- Individual citrus flavor materials and essential oils, including customized flavor blends
- Flavor enhancers for grapefruit and other citrus
- Citrus flavor modifiers specifically targeted to improve the quality and taste of food and beverages sweetened with natural or artificial sweeteners.
“ADM has long been an admired industry innovator whose global nutrition portfolio capabilities are second-to-none,” said Josh Snively, president of Florida Chemical and Flotek’s executive v.p. of operations. “Florida Chemical’s citrus expertise, together with our combined leadership in research and development, will allow us to strategically accelerate and expand our diverse offering to a wide and growing customer base.
“Additionally, I am pleased that we will continue our strong relationship with Flotek through both a long-term supply agreement and through the joint pursuit of next-generation chemistry technologies for the energy and agriculture industries.”