ADM has agreed a deal to acquire European citrus flavours supplier Erich Ziegler for an undisclosed amount, significantly enhancing its presence in the citrus ingredients market.
Headquartered in Aufsess, Germany, Erich Ziegler uses proprietary cold concentration technologies to produce natural citrus oils, extracts, concentrates and compounds for customers in the flavour, food, and beverage industries.
ADM claims that citrus is one of the fastest growing segments of the flavours market, and this latest deal complements ADM’s acquisition of citrus flavours producer Florida Chemical Company earlier this year.
The acquisition is subject to regulatory approval, and ADM estimates that the transaction will be completed by the second quarter of 2019.
Vince Macciocchi, president of ADM’s nutrition business, said: “Ziegler is highly respected as a cutting-edge leader in citrus, and we’re excited to welcome their outstanding leadership and talent to ADM.
“The combination of Ziegler and Florida Chemical will immediately position ADM for growth as a global leader in natural citrus ingredients, with a complete range of innovative citrus solutions and systems for food, beverage and fragrance customers.
“Citrus is one of the fastest-growing, highest-demand flavours for food and beverages, which is why the creation of a global citrus platform offering a complete product line for our customers is such an important capability for our growth strategy.
“We’re continuing the most ambitious portfolio transformation in our company’s long history, and as we build the world’s leading nutrition company, the beneficiaries will be our customers and our shareholders.”
Günter Ziegler, managing director at Erich Ziegler, added: “We are delighted that we found a strong home at ADM where both our business and our people can grow.
“The integration of more than 50 years of citrus expertise into the ADM group will secure our top priority: successful long-term growth for our business and our employees.
“Our family members will be staying with the company to help ensure a smooth transition.
“We’re excited to join ADM and strongly believe that the combination of our technology and citrus capabilities, coupled with the portfolio of ingredients and global reach of ADM, will accelerate growth opportunities while creating benefits for our customers.”
© FoodBev Media Ltd 2019