“We are committed to ongoing portfolio management to realise value from our businesses and to deploy our capital where it can best improve returns,” said ADM chairman and CEO Patricia A Woertz. “The actions we are announcing are results of this continuing process. Each of these transactions will help ADM continue to improve returns and create shareholder value.
“These actions complement recent demand-driven strategic investments, such as our $250m high-value protein facility in Brazil. We are taking action to realise returns today and positioning ourselves for continuing profitable growth around the globe in the future.”
ADM has signed an agreement to sell its fertiliser business in Brazil and Paraguay to The Mosaic Company for $350m. The transaction consists primarily of five ADM-owned blending facilities in Brazil and Paraguay. The purchase price includes $150m in working capital.
ADM will pursue the sale of its chocolate business, while retaining the majority of its cocoa press operations. The company has engaged advisers to facilitate the sale process.
ADM will acquire the remaining 20% minority stake of Alfred C Toepfer International for €83m, representing about 1.1x net book value. The proposed transaction, which is occurring through the exercise of a put agreement by Union InVivo, will be subject to customary regulatory approvals. Since 2002, ADM has owned 80% of Toepfer; InVivo has held the remaining 20% since 2010.
Source: Archer Daniels Midland Company
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