ADM reaches agreement to acquire Florida Chemical Co.
The deal will help ADM expand citrus flavor capabilities.
Archer Daniels Midland Company (ADM), a Chicago-based food processing and food ingredient provider, announced that it will acquire Florida Chemical Co. (FCC), a division of Flotek Industries that specializes in citrus-based flavors and fragrances and is one of the world’s largest providers of citrus oils and ingredients.
“Citrus is one of the fastest-growing flavor categories and the single most important taste profile for beverages,” said Vince Macciocchi, president of ADM’s nutrition business unit. “ADM is already a leader in natural flavors for food and beverages, offering a wide variety of high-value products and solutions in areas such as vanilla and mint, and this acquisition will place us in a leadership position for citrus flavors as well.”
Based in Winter Haven, Fla., FCC has provided customers with citrus ingredients for more than three quarters of a century. The company produces a wide range of high-value citrus flavor ingredients, specialty terpenes and formulated products primarily for the flavor, fragrance and consumer products markets. According to ADM, FCC’s high-quality products match consumer preferences for natural, clean-label and reduced-sugar foods and beverages.
Josh Snively, president of FCC and Flotek’s executive vice president of operations, said that FCC will continue its relationship with Flotek through a long-term supply agreement and through the joint pursuit of next-generation chemistry technologies for the energy and agriculture industries.
The deal, which requires regulatory approval, is expected to close in the first quarter of 2019. When the transaction is complete, FCC’s approximately 75 employees will transfer to ADM.