Archer Daniels Midland (ADM) has revealed plans to acquire Chamtor, which manufactures sweeteners and starches based on wheat.
The company said that French-based Chamtor would add to its European sweetener and starch footprint, following recent moves in the east.
“After adding to our sweetener and starch capabilities in Eastern Europe, we are continuing to execute our strategy by expanding in Western Europe,” said ADM Europe, Middle East and Africa president Pierre Duprat.
“70% of the European starch and derivatives market is in Western Europe,” Duprat continued. “Chamtor is located in the heart of the European wheat belt, and is perfectly positioned to efficiently serve Western European sweetener and starch customers, particularly in France, Germany, Belgium and the Netherlands.”
The company, founded in 1992, produces glucose, starch and proteins from wheat. The sale of the Reims-based business, which employs around 210 staff, is being conducted through its current owners Vivescia Industries.
It follows ADM’s purchase of full ownership in corn wet milling facilities in Bulgaria and Turkey in 2015, as well as the acquisition of a 50% stake in another wet mill in Hungary. Last year, the company acquired a sweetener and starch facility in Morocco, and announced expansion plans for the Turkey and Bulgaria plants.
Chris Cuddy, president of ADM’s corn processing business said: “One of the key elements of our strategy to grow shareholder value is the expansion and diversification of our global sweetener and starch capabilities. With our significant and growing footprint, we are looking forward to efficiently serving sweetener and starch customers throughout Europe.”
ADM is targeting completion of the transaction, which still requires regulatory approvals, by this summer.
© FoodBev Media Ltd 2017