Cargill has completed the acquisition of Archer Daniels Midland's (ADM's) global chocolate business, for an enterprise value of $440 million. The acquisition, announced on August 3, constitutes a milestone for Cargill's chocolate growth strategy, strengthening its position as a leading player in the cocoa and chocolate industry.
The combined business gives Minneapolis-based Cargill enhanced capabilities and product lines that support the long-term needs of existing and new customers. Cargill's cocoa and chocolate business now operates globally, with 27 sites in 11 countries and more than 3,000 employees. The company serves customers worldwide with cocoa and chocolate products, tailor-made for confectionery, bakery, dairy and other applications.
As part of the deal, ADM will transfer three chocolate, compound and liquor production sites in North America — Milwaukee, Hazleton, Pa. and Georgetown Ont., — three chocolate and compound production sites in Europe — Liverpool, Manage, Belgium and Mannheim, Germany — and more than 650 employees to Cargill. The Ambrosia, Merckens and Schokinag brands will join Cargill's existing portfolio of chocolate brands. Addressing the European Commission's conditional clearance, Cargill has agreed to divest ADM's industrial chocolate production facility in Mannheim, Germany. The facility will be kept as a separate entity with its own interim management until transferred to a prospective buyer. Chocolate production onsite and service to customers continues normally. The product range includes Gerkens cocoa powders, chocolate, coatings, fillings, cocoa liquors and cocoa butters.
"Along with our access to the global cocoa supply chain and an enhanced technology base, we will be able to improve the delivery of new applications to our customers," says Jos de Loor, president of Cargill's cocoa and chocolate business EMEA and Asia. "We are seriously committed to help our customers grow and are excited to begin our new journey."