ADM acquires ingredient company Wild Flavors

July 7, 2014, Decatur, Ill. – Archer Daniels Midland is
acquiring Swiss natural ingredient supplier Wild Flavors in an effort to expand its food and
beverage offerings.

July 7, 2014, Decatur, Ill. – Archer Daniels Midland is
acquiring Swiss natural ingredient supplier Wild Flavors in an effort to expand its food and
beverage offerings.

In an all-cash transaction valued at approximately €2.3 billion
enterprise value, ADM will pay €2.2 billion to Wild Flavors shareholders
Dr. Hans-Peter Wild and funds affiliated with Kohlberg Kravis Roberts &
Co. L.P., and assume approximately €0.1 billion of net debt. The
transaction is contingent on regulatory approvals and is expected to
close by year end.

“This acquisition expands ADM’s ability to serve customers’ evolving
needs today and well into the future,” said ADM chairman and chief executive officer
Patricia Woertz, in a media statement. “Natural flavor and ingredients is one of the largest
and fastest-growing consumer trends in both developed and emerging
markets, and Wild Flavors is the world’s leading provider of natural
flavor systems to the food and beverage industry.”

Wild Flavors, with more than 3,000 customers worldwide and estimated
2014 net revenues of about €1 billion, offers food and beverage
companies full flavour and ingredient solutions – known as flavour
systems – and fruit juice concentrates and blends, as well as other food
and beverage ingredients, including natural flavours and extracts, mint
oils and flavours, colours from natural sources, sweetening systems,
seasonings, specialty ingredients, taste modifiers, and fermentation
technologies.

“Together, ADM and Wild Flavors will create one of the leading flavor
and specialty ingredient companies in the world, with sales approaching
$2.5 billion and significant room to grow,” Woertz said in the statement. “Wild Flavors
will be able to reach more customers with an expanded portfolio of
innovative ingredients. And ADM, with our own sizeable specialty
ingredient business, will have an enhanced platform for the
commercialization of our higher-margin food and wellness ingredients.

“Together, we will be uniquely positioned to offer a broad range of
customers – from the largest CPG’s to fast-growing
innovators – comprehensive systems-based solutions for food, beverage and
personal care products. With our combined global networks, world-class
research & innovation capabilities, Wild Flavors’ natural flavor
systems, and ADM’s texture, nutrition and functional solutions, we will
create an unmatched capability to respond to local consumer preferences
and offer complete food solutions that taste great."

Dr. Hans-Peter Wild, chairman of Wild Flavors, said in a statement, “I am very
pleased by ADM’s acquisition of Wild Flavors and the future business we
will build together. Wild Flavor’s unique natural flavors strength and
total systems approach will create a very strong and positive
development platform within ADM for our customers as we continue to
drive innovation in the food and beverage industry. With the strong
financial resources, and expanded customer base, product offering and
global footprint, I am confident Wild Flavors will be well-positioned
for growth.”

“We have tremendous respect for the culture and business that Dr. Wild
has built,” Woertz said. “Given the strong brand Wild Flavors has with
customers around the world, we intend to maintain the Wild Flavors name
and grow the brand and the innovative, entrepreneurial culture that
sustains it. We appreciate the difference in our business models, and
will support continued success of the Wild Flavors model by establishing
a new business unit called Wild Flavors and Specialty Ingredients. The
new unit will include many of our specialty ingredients. We are also
excited to work with the Wild Flavors team. With more than 400
scientists and applications specialists and a global sales force, they
will bring exceptional expertise and new capabilities.”