Cargill acquires ADM’s global chocolate biz
By Bakers Journal
By Bakers Journal
Aug. 4, 2015, Minneapolis – Cargill has completed its acquisition of ADM’s global chocolate business for an enterprise value of $440 million.
The acquisition underlines Cargill’s commitment to meeting customer needs and constitutes a milestone for its chocolate growth strategy, strengthening its position as a leading player in the cocoa and chocolate industry, according to a company news release.
The combined business provides Cargill with enhanced capabilities and product ranges to deliver a broad portfolio of products that support the long-term needs of existing and new customers. Cargill’s cocoa and chocolate business now operates globally with 27 sites in 11 countries and more than 3,000 employees. It serves customer needs worldwide with a distinctive range of innovative and high quality cocoa and chocolate products.
“Along with our access to the global cocoa supply chain and an enhanced technology base, we will be able to improve the delivery of new applications to our customers,” said Jos de Loor, president of Cargill’s cocoa and chocolate business in Europe, the Middle East, Africa and Asia. “We are seriously committed to help our customers grow and are excited to begin our new journey.”
“Bringing together the talents and expertise of our two organizations will enable us to have a broader market reach and an even better product and service capability,” added Bryan Wurscher, president of Cargill Cocoa and Chocolate North America. “By understanding and responding to customers’ needs we will be able to offer them distinctive value, which in turn will help create growth opportunities for our customers and for our business, as we increase the scale and focus of our operations.”
In order to address the European Commission’s conditional clearance of the acquisition, Cargill has agreed to divest ADM’s industrial chocolate production facility in Mannheim, Germany. The facility will be kept as a separate entity with its own interim management until it can be transferred to a prospective buyer. Chocolate production onsite will continue as normal and service to customers will not be affected.
Cargill’s cocoa and chocolate business offers the food industry a wide range of both standard and customized cocoa and chocolate ingredients for use in bakery, confectionery and dairy applications. The company’s product range includes high quality Gerkens cocoa powders, chocolate, coatings, fillings, cocoa liquors and cocoa butters.