ADM to acquire Algar Agro’s Brazilian oilseeds facilities
US food processing company Archer Daniels Midland (ADM) has agreed to acquire certain assets of Brazil-based Algar Agro for an undisclosed price in a move to improve its position in key Brazilian meal and bottled oil markets.
The assets involved in the deal are oilseeds processing plants in Uberlandia in Minas Gerais, and Porto Franco in Maranhao. About 400 people employed with Algar Agro will be absorbed by ADM after the completion of the transaction.
According to the terms of the deal, ADM will become owner of integrated crush and oil refining/bottling plants in Uberlandia and Porto Franco. The US food processing company will also get access to a broad network of origination and storage silos across northeastern and southeastern Brazil.
ADM North America HQ in Decatur, Illinois. (Photo by/Mark Cowan/HO)
Greg Morris
Greg Morris – senior vice president and president of ADM’s Oilseeds business, said: “ADM is already the most diversified oilseeds processor in the world, and now we are once more expanding our capabilities to help meet growing global demand. The acquisition of Algar Agro’s crush and refinery plants in Minas Gerais and Maranhão strengthens our position in key Brazilian demand regions, and continues our strategic global growth.”
Currently, ADM’s oilseeds operations in Brazil include soy processing facilities in Rondonópolis, Campo Grande, Ipameri, Joaçaba and Uberlandia, a sunflower plant in Campo Novo dos Parecis, biodiesel refineries in Rondonópolis and Joaçaba, as well as a network of storage facilities.
ADM produces and sells the Concórdia, Vitaliv and Corcovado brands of cooking oils.
Luiz Alexandre Garcia – CEO, Algar Group said: “This deal represents an important step towards the implementation of Algar Group´s portfolio and capital allocation strategy. In the Agribusiness sector, we are exiting the soybean crushing and trading segment and focusing on grains production (Algar Farming).”
The deal is expected to be wrapped by the end of the year should it secure the Brazilian regulatory approval.