Archer Daniels to Acquire Wild Flavors for $3B

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July 7 (Bloomberg) -- Bloomberg’s Hans Nichols reports on Archer-Daniels-Miland Company to acquire wild flavors for three billion dollars. He speaks with Betty Liu on “In The Loop.” (Source: Bloomberg)

Wild flavors was started as a german company and is now headquartered in switzerland.

Downstream, some of their products include capri sun.

I wish think of capri sun as the drink other kids got to drink because it has unhealthy artificial coloring and flavor in it.

Lo and behold, this is part of a natural food company.

This did turn into a bit of a bidding war.

You saw a japanese company try to get involved.

Some swedish private equity, as well.

65% is owned by the son of the founder.

He takes a big chair.

35% was kkr.

It is part of an overall story of go local, go healthy.

Normally i don't report a drink story unless it is vodka or beer.

I make a concession because capri sun is so intertwined in my childhood.

How does this position archer dan -- archer daniels?

It gives them a foothold in europe, or another foothold.

We have seen a lot of m&a activity in the last six months.

Some of it is tax related.

U.s. companies looking for place to park cash to gobble up assets.

This is not one of those.

If adm were to take over this company and then hoard quarter it -- headquartered in luxembourg and filter their taxes through it, it would be analogous to pfizer and astrazeneca.

This is not that.

This is a company that wants more of a toehold in the european market and the natural foods market.

Hans nichols, thank you so much.

It is a big week for the market.

Watching murders -- mergers and acquisitions.

Futures are poised to open lower.

Alcoa kicks off the earnings season unofficially.

Unemployment drops to the lowest level in six years.

This causes speculation that the fed may raise rates earlier than expected.

For more, we are joined by joe

This text has been automatically generated. It may not be 100% accurate.

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