The deal, it said, strengthens ADM's presence in the UK, as well as increasing storage, origination and destination marketing capabilities.
Gleadell, including its wholly owned subsidiary Dunns Ltd, is currently jointly owned by ADM and InVivo. It is a leading supplier of crops to UK millers, feed compounders and other consumers, and a major exporter of grains, oilseeds and pulses to EU markets and further afield. The company sources crops directly from UK farmers and supplies certified seed and fertilizers. It is also a large trader of organic grain in the UK. Its key assets include port storage and ship loading operations along with extensive pulse and agricultural seed processing and storage.
ADM said it would merge Gleadell and Dunns with ADM Arkady, ADM’s UK destination marketing business, and ADM Direct UK, ADM’s specialist combinable crop origination business to create ADM Agriculture Ltd.
It would not disclose the financial details of the deal, which is subject to regulatory review and expected to close during the first quarter of 2019.
When asked how feed compounders would gain, if at all, from this buyout, an ADM spokesperson told FeedNavigator:
“Feed compounders will benefit from an extended product offering with access to enhanced logistics services across the UK. By leveraging the strengths and capabilities from all four origination businesses, we will complement our existing capabilities in a more efficient and unified manner.”
Also commenting on the uncertainty for UK business created by the EU exit process, she added:
“We are monitoring the process closely, and are confident in our ability to manage through the situation. More widely, as a company with a long history in both the EU and the UK, we hope for a final deal that will continue to support the free and fair flow of food and agricultural goods in Europe.”
ADM’s CEO and chairman, Juan Luciano, said in an interview with Reuters yesterday [January 16] that it had looked at buying rivals including Bunge, but decided the time was not right for such major acquisitions.
Last July ADM revealed it was in talks to buy animal nutrition group, Neovia, from InVivo. That deal is said to be in the closing stages.