Caroline Hyde, the European Business Correspondent on Bloomberg TV, in her report, has mentioned that food processing major Archer Daniels Midland Company (NYSE:ADM), is close to buy out privately held Swiss natural drinks manufacturer Wild Flavours in a deal which is purported to be costing the Decatur, IL based firm close to $3.4 billion.
Wild Flavours is the world’s sixth largest “naturally sourced flavours” provider and generated a little over $838 million in revenue last year. Over the years, this firm has produced such house hold brands like the “Capri Sun” its popular orange juice product sold in a pouches and had way back in the 60’s co-opted boxing legend Mohamed Ali to endorse its products.
Hyde went on to report that a public announcement to the effect is imminent from Archer Daniels Midland Company (NYSE:ADM) over the next few days, by quoting her unnamed sources within the company. Archer Daniels Midland Company (NYSE:ADM) is attempting to buy out the majority stake that Mr. Hans Peter Wild, (aged 70 years and son of the company founder) holds in Wild Flavours.
Bloomberg TV also reported that Archer Daniels Midland Company (NYSE:ADM) prevailed over stiff bidding competition from the likes of Japanese firm Ajinomoto Co, Inc. to emerge victories in its bid to own this 83 year old company, which traces its origin to founder Rudolf Wild of Germany and boasts of its products being marketed in 30 countries spread across the globe.
Caroline Hyde, while presenting her analysis of the 2.5 billion Euro deal went on to state that, Archer Daniels Midland Company (NYSE:ADM) is attempting to tap into the growing demand worldwide for natural flavoured drinks among customers. “ The deal is all about getting into fruit juices, all the fads that we are seeing,” she said.