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Archer Daniels Midland Company has reached an agreement to acquire Florida Chemical Company, a division of Flotek Industries.
Archer Daniels Midland Company (ADM; Chicago, IL) has reached an agreement to acquire Florida Chemical Company (Winter Haven, FL), a division of Flotek Industries (Houston, TX), which is one of the world’s largest providers of citrus oils and ingredients, specializing in citrus-based flavors and fragrances. With this acquisition, ADM hopes to capitalize on the success and fast growth of the citrus flavor category.
“ADM is already a leader in natural flavors for food and beverages, offering a wide variety of high-value products and solutions in areas such as vanilla and mint, and this acquisition will place us in a leadership position for citrus flavors as well,” said Vince Macciocchi, president of ADM’s nutrition business unit, in a press release. “Citrus is one of the fastest-growing flavor categories, and the single most important taste profile for beverages, and no one in North America does citrus better than Florida Chemical Company.”
“Florida Chemical’s citrus expertise, together with our combined leadership in research and development, will allow us to strategically accelerate and expand our diverse offering to a wide and growing customer base,” said Josh Snively, president of Florida Chemical and Flotek’s executive vice president of operations, in a press release. “Additionally, I am pleased that we will continue our strong relationship with Flotek through both a long-term supply agreement and through the joint pursuit of next-generation chemistry technologies for the energy and agriculture industries.”
Pending regulatory approval, the deal is expected to close in the first quarter of 2019 after which Florida Chemical’s 75 employees will to transfer to ADM.