ADM Expands Food-Ingredient Offering with Acquisition of WILD Flavors

  ADM Expands Food-Ingredient Offering with Acquisition of WILD Flavors

    €2.3 billion acquisition adds flavor systems to portfolio of specialty

Business Wire

DECATUR, Ill. -- July 7, 2014

Archer Daniels Midland Company (NYSE: ADM) today announced that it is
acquiring WILD Flavors GmbH, giving ADM the ability to offer food and beverage
companies a comprehensive suite of systems to enhance and improve their

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 CEO Patricia Woertz.
“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 flavor
and ingredient solutions—known as flavor systems—and fruit juice concentrates
and blends, as well as other food and beverage ingredients, including natural
flavors and extracts, mint oils and flavors, colors 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. “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.

“The addition of WILD Flavors balances and extends our value chain,” Woertz
said. “It is consistent with our long-term strategy to diversify the crops we
process and expand and diversify our product portfolio. It complements the
ingredient, organic-growth investments we’ve recently made—including our
Brazil protein complex and soluble-fiber expansion in China. And it is
consistent with actions we’ve taken to dampen the volatility of our earnings
mix and deliver on our commitment to profitable growth. The acquisition will
meet our return objectives, with estimated cost and revenue synergies of €100
million by year three.”

Dr. Hans-Peter Wild, chairman of WILD Flavors GmbH, said, “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.”

Johannes Huth, member and head of KKR Europe, Africa and Middle East
operations, said: “WILD Flavors represented for KKR the opportunity to partner
with an innovative family entrepreneur in developing a high-quality, R&D
driven, Germany-based Mittelstand business. The partnership was tailored to
the family ownership and the vision of Dr. Wild to develop WILD Flavors into a
globally integrated producer of flavors and flavor systems. The substantial
growth and global expansion of WILD Flavors over these past years helped make
the company an attractive and valuable partner for an industry-leading global
company like ADM.”

Barclays is acting as financial advisor to ADM. Skadden, Arps, Slate, Meagher
& Flom LLP is acting as legal advisor.

Investor Call

ADM will host a conference call and audio webcast today, July 7, 2014, at 8
a.m. Central Time. A slide presentation will be available to download prior to
the call.

To listen to the call via the Internet or to download the slide presentation,
go to To listen by telephone, dial (888) 522-5398 in the
U.S. or (706) 902-2121 if calling from outside the U.S. The access code is

Replay of the call will be available from July 8, 2014 to July 14, 2014 10:59
p.m. Central Time. To listen to the replay by telephone, dial (855) 859-2056
in the U.S. or (404) 537-3406 if calling from outside the U.S. The access code
is 70905489. The replay will also be available online for an extended period
of time at

About ADM

For more than a century, the people of Archer Daniels Midland Company (NYSE:
ADM) have transformed crops into products that serve vital needs. Today,
31,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa
into products for food, animal feed, industrial and energy uses. With more
than 270 processing plants, 470 crop procurement facilities, and the world’s
premier crop transportation network, ADM helps connect the harvest to the home
in more than 140 countries

ADM’s Foods & Wellness group offers a range of innovative specialty
ingredients and products for the beverage, meat, snack, bakery, cereal,
wellness and personal care markets. As a global market leader in food-grade
proteins, ADM’s Foods & Wellness group also markets numerous health and
nutrition products, lecithin, acidulants, hydrocolloids and polyols. Some of
those products include Textura™ protein and fiber pieces, Clarisoy™ beverage
protein, and Ultralec® lecithin. For more information about ADM and its
products, visit

About WILD Flavors GmbH

WILD Flavors GmbH is headquartered in Zug, Switzerland, and is one of the
world’s leading suppliers of natural ingredients to the food and beverage
industry. Its management offices with production sites are located in
Heidelberg-Eppelheim, Germany (Rudolf Wild GmbH & Co. KG) and Erlanger,
Kentucky, USA (WILD Flavors, Inc.). Thirteen further production sites are
located in Europe, USA, Canada, China, Japan, India, Brazil, and Dubai.

The WILD Flavors product portfolio includes full flavor and ingredient
solutions, known as flavor systems, fruit juice concentrates and blends as
well as other food and beverage ingredients including natural flavors and
extracts, mint oils and flavors, colors from natural sources, sweetening
systems, seasonings, specialty ingredients, taste modifiers, and fermentation
technologies. WILD Flavors GmbH provides the global beverage and dairy market
as well as the baked-goods, confectionery and ice cream industry with its
products. In the USA and Canada, WILD Flavors GmbH is a supplier for the
cereals, snacks, and processed food markets as well. For more information
about WILD, please visit:

About KKR

KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure, real
estate, credit and hedge funds. KKR aims to generate attractive investment
returns by following a patient and disciplined investment approach, employing
world-class people, and driving growth and value creation at the asset level.
KKR invests its own capital alongside its partners' capital and brings
opportunities to others through its capital markets business. References to
KKR’s investments may include the activities of its sponsored funds. For
additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR's
website at


Archer Daniels Midland Company
Media Relations
Jackie Anderson, 217-424-5413
Media Relations, Europe
Elissa Bertot, +41 21 702 8400
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