English
French
German
Italian
Russian
Spanish
ADM closes on flavor company purchase amid accounting probe
ADM closes on flavor company purchase amid accounting probe By Reuters
Breaking News
‘;
Published Jan 31, 2024 05:08PM ET
© Reuters. FILE PHOTO: The Archer Daniels Midland Co. (ADM) logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo
By P.J. Huffstutter
CHICAGO (Reuters) – Global grains merchant Archer-Daniels-Midland Co on Wednesday closed on its purchase of Fuerst Day Lawson Ltd (FDL), a U.K.-based company that develops flavors and produces specialty ingredients for food-service customers in Europe, an ADM spokesperson told Reuters.
The deal, announced in December, is the latest move by ADM to expand its Nutrition segment, the same unit that is under scrutiny as the 122-year-old company faces a government inquiry and internal investigation.
Financial details of the FDL acquisition were not disclosed.
ADM officials declined to comment further on the deal. Officials with FDL did not return repeated requests for comment.
Shares of ADM last week plunged to their biggest daily drop since 1929, after Chief Financial Offer Vikram Luthar was placed on administrative leave and the company brought in outside lawyers to investigate accounting practices at its Nutrition segment.
ADM cut its 2023 profit forecast and said fourth-quarter results would be delayed due to the investigation related to certain intersegment transactions, in response to a voluntary document request by the U.S. Securities and Exchange Commission (SEC).
FDL’s offerings include custom flavors for food manufacturers, as well as syrups, sauces, juice blends, botanical extracts and bakery ingredients, according to the company’s web site. It operates five locations in the United Kingdom and had projected 2023 sales of approximately $120 million, ADM said in a statement when it announced the deal on Dec. 18.
The deal followed ADM’s acquisition of Revela Foods, a Wisconsin-based developer and manufacturer of dairy flavor ingredients and solutions. The deal closed earlier this year, ADM told Reuters.
ADM closes on flavor company purchase amid accounting probe
Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information
© 2007-2024 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
