ADM announced agreements this week to purchase two global flavoring ingredient firms.
The company plans to acquire Revela Foods, a Wisconsin-based developer and manufacturer of dairy flavor ingredients and solutions, and United Kingdom-based FDL, a developer and producer of premium flavor and functional ingredient systems.
Both transactions are expected to complete in early 2024 and are subject to customary closing conditions and regulatory approvals.
Revela, with projected sales of almost $240 million in 2023, would add new capabilities to ADM’s global flavors portfolio in the $1.8 billion global dairy flavors segment, as well as the $3.2 billion savory flavors segment.
Revela, a portfolio company of New Heritage Capital since 2019, has delivered rapid growth, driven by its innovative enzyme technology, which powers a broad range of clean-label dairy flavor formulations for multiple applications, from snacks and frozen meals to sauces, dressings, soups, seasonings and desserts. Approximately 400 Revela employees operate three production facilities in the Midwest.
FDL, with projected 2023 sales of approximately $120 million, operates three production facilities and two customer innovation centers, all in the UK. The company’s approximately 235 employees, including about 40 dedicated innovation specialists, have created more than 10,000 proprietary flavor formulations that enable accelerated speed to market. FDL’s customers span channels, and include a significant presence in the $900 billion European foodservice segment.
“Our ongoing investments to add to our flavors portfolio are helping power our strategic work to build a global leader in nutrition,” said Calvin McEvoy, ADM’s president of global flavors, in a release.
ADM officials said the company continues to add to its portfolio of flavor ingredients and solutions as it builds a global leader in nutrition. Since acquiring WILD Flavors in 2014, ADM has added multiple new offerings to its flavors portfolio through acquisitions, including savory via Eatem Foods; citrus via Florida Chemical Company and Erich Ziegler Citrus; and vanilla via Rodelle.
The company has also expanded its flavors capabilities globally with acquisitions like Flavor Infusion South America; organic investments like its Pinghu, China, flavor production facility and the expansion of its Berlin flavor facility; and its growing network of innovation centers spanning Europe, Asia, Latin America and North America.
“ADM’s integrated business model and unparalleled production and product application expertise power a portfolio of customizable, complete nutrition solutions that no other company can match,” said Ian Pinner, president of ADM’s nutrition business. “Our flavors business is an important pillar of our nutrition growth strategy, and we are continuing to add to our flavors pantry to ensure we remain the partner of choice for customers around the globe.”
Based in Chicago, ADM is a global leader in human and animal nutrition and operates several facilities in the greater Cedar Rapids area, including a corn dry mill, corn wet mill, cogeneration power plant, and trucking and railcar repair facilities.
