ADM Reported to be Among Bidders for Wild

27 May 2014 --- Global agricultural group, Archer Daniel Midland Co (ADM), is among the bidders for flavour and ingredients maker, Wild, in a deal which values the German company at EUR1.5bn, according to reports. Other bidders for the company are believed to be UK-based food ingredients group Tate & Lyle, Swiss flavour and fragrance firm Givaudan, Japanese seasonings maker Ajinomoto and Swedish private equity firm EQT Partners.

Wild was originally founded in Germany in 1931 but is now based in Switzerland. The company has made strategic acquisitions across the globe, and is now reported to be the world’s sixth-biggest flavors producer. The company, which has annual sales of around E900m, also supplies natural flavour ingredients for the beverages industry.

Its background in natural food ingredients is believed to be an attractive component for many of the bidders, as consumers across the world continue to seek out foods made up only of natural ingredients.

ADM is one of the world’s leading producers of food ingredients as well as one of the world’s largest agricultural processors with more than 270 processing plants, as well as a large number of crop procurement facilities. It has annual sales of $89.8bn.

Wild is considered to be a good fit with ADM, according to reports. The deal would help ADM expand further into Europe as well as improving its product mix.

Earlier this month president and chief operating officer, Juan Luciano, noted that ADM had taken several recent actions to optimize its portfolio of businesses as part of the broader returns strategy. 

“We’ve sold or are working to sell businesses that we don’t expect will meet our returns criteria long-term,” Luciano explained, citing as examples the pending sale of its South American fertilizer business to The Mosaic Company and efforts to sell ADM’s global chocolate and Brazilian sugar ethanol businesses.

“With businesses that can be improved, we’ve taken decisive steps to enhance performance, either by reducing invested capital, managing costs and production levels, or repurposing the asset entirely,” he added.

“Finally, there are situations where an acquisition, or increased ownership, is in the best interest of the company and our shareholders,” Luciano said, noting as an example ADM’s pending acquisition of the remaining 20 percent stake in Alfred C Toepfer International GmbH.

All potential bidders for Wild (and Wild itself) declined to comment on the news.

The move comes shortly after the news that German fragrance and flavors maker Symrise made a binding offer to acquire French food ingredients maker Diana Group from private equity group Ardian for E1.3bn.

Ajinomoto also bid for the Diana Group, but lost the acquisition to Symrise.

It is believed by those in the industry that Symrise is unlikely to bid for Wild after the acquisition of Diana.

by Sonya Hook