ADM to acquire 50% stake in Russia’s Aston’s syrups and starches business
Food acquisition news : US food processing company Archer Daniels Midland (ADM) has struck a deal to acquire a stake of 50% in the starches and syrups business of Aston Foods and Food Ingredients, a Russian food company.
The financial details of the deal have not been disclosed.
As per the terms of the deal, the US food processing company will own 50% of Aston’s corn wet mills in Ibred and Novlyanka in Russia.
According to ADM, the corn wet mills are strategically located near important customers in the Russian food and beverage sector.
ADM North America HQ in Decatur, Illinois. (Photo by/Mark Cowan/HO)
Commenting on ADM acquisition, Pierre Duprat – president of ADM Europe, Middle East and Africa, said: “ADM has substantially added to our global sweeteners and starches capabilities with acquisitions serving the European Union, Middle East and North Africa markets, and now we are expanding to serve the growing Russian food and beverage industry.
“Aston is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly-owned business grow.”
Aston started the starch and syrup business in 2011 after acquiring Russian Starch Products, one of the top Russian starch producers. The acquisition then by Aston gave it a couple of corn processing plants in Ibredkrakhmalpatoka in Ryazan region and Novlyanskiy Krakhmalo-Patochniy Zavod in Vladimir region.
Aston CEO Vadim Vikulov, commenting on the ADM acquisition, said: “Our corn processing plants produce a wide range of more than 20 different types of sweeteners, starches, food products and animal feeds for various industries, including modified, native, oxidized and cationic starches, as well as glucose-fructose syrups and corn oil for more than 350 partners-enterprises in B2B sector.
“In partnership with ADM, ASTON targets to increase the variety of products and improve their quality in order to meet the growing demand from customers in the Russian Federation and CIS countries”.
Subject to receipt of regulatory approval, the ADM acquisition of the Aston starches and syrups business is likely to be completed in Q2 2018.
Earlier this week, ADM made a deal with agrifood company Cargill to form a soybean joint venture in Egypt.