ADM Nearing Deal To Buy German Flavors Firm For $3.4B

Leading global agribusiness group Archer Daniels Midland Co (ADM) is close to buying privately-held German flavors and ingredients firm Wild Flavors GmbH, for about $3.4 billion, according to a Bloomberg report on Thursday.

The report said the Illinois-based company outbid Japanese rival Ajinomoto Co. to clinch the deal for Wild Flavors. The agreement is expected to be announced over the next few days.

Founded by Rudolf Wild in Heidelberg, Germany in 1931, the Zug, Switzerland-based Wild Flavors is a producer of natural-flavor ingredients for non-alcoholic beverages. It is the world’s sixth-largest flavor provider, and generated sales of more than $1.1 billion in fiscal 2012.

Currently, Hans-Peter Wild, son of founder Rudolf Wild, owns 65 percent of Wild Flavors, while New York -based private equity firm Kohlberg Kravis Roberts & Co. L.P. [KKR] owns 35 percent. KKR picked up the stake in January 2010.

In May, Reuters had reported that Archer Daniels was among the bidders for Wild Flavors in a deal that could be valued at more than $2 billion.

Shares in the $30 billion company closed Thursday’s regular trading session at $45.77, up 45 cents, or 0.99% on a volume of 3.15 million shares.

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