ADM Expands Range of Vanilla Capabilities with Agreement to Acquire Rodelle
23 Juli 2018 - 07:15PM
Business Wire
- Acquisition includes equity stake in
farmer cooperative in Madagascar, part of the most extensive
vertically integrated supply chain in the vanilla industry
Archer Daniels Midland Company (NYSE: ADM) announced today that
it has reached an agreement to acquire Rodelle Inc., a premium
originator, processor and supplier of vanilla products.
Rodelle, founded in 1936 and based in Fort Collins, Colorado,
originates, processes and sells premium vanilla products, including
organic and traditional extracts, beans, alcohol-free flavor and
paste. The company also sells non-vanilla products, including
flavorings, extracts, spice blends and organic spices. Rodelle
provides ingredient solutions to major food and beverage makers, as
well as directly to consumers, with a premium retail brand that can
be found in the baking aisle of most grocery stores in North
America. The company’s sales last year were approximately $40
million.
Rodelle’s supply chain is unique among major vanilla processors.
In Madagascar, the company owns a stake in Federation Sahanala
Vanille — a joint venture between Rodelle and a partnership of
local associations that now includes more than 2,100 registered
vanilla farmers — and is capable of producing industry-leading
volumes of certified organic vanilla. Rodelle also has a strategic
partnership with Gourmet Gardens, providing sourcing of vanilla in
Uganda. By removing the third parties that are typical in other
vanilla processor supply chains, Rodelle is able to offer
competitive pricing and a reliable supply.
“With the acquisition of Rodelle, we are continuing to grow our
value chain by enhancing what is already one of the most
comprehensive portfolios in the flavor industry,” said Scott
Olstad, president of ADM’s North American WILD Flavors business.
“Not only is vanilla one of the most popular and enduring flavors,
but Rodelle’s integrated supply chain will allow us to offer an
unparalleled range of certified organic and natural vanilla
ingredients for today’s health-conscious consumers. The addition of
Rodelle will give us immediate capabilities in both the retail and
commercial vanilla markets, and we see significant opportunities to
expand the business. We’re looking forward to working with the
great Rodelle team to help build on their impressive success.”
Rodelle has about 70 full-time employees. The company operates a
65,000-square-foot extraction and processing facility in Fort
Collins; the modern plant was built in 2008 and expanded in 2014,
and includes labs for testing and R&D.
“This acquisition represents another important step in our
strategy to create shareholder value,” said Vince Macciocchi, ADM’s
senior vice president and president, Nutrition. “Rodelle will be a
key part of our integrated human and animal Nutrition business — a
business that we are focused on growing. Earlier this summer, we
announced two important additions to our Nutrition business unit:
Neovia, a global leader in value-added animal nutrition products,
and Probiotics International Limited, a U.K.-based provider of
probiotic supplements for human, pet and production animal use.
With these and other transactions, we are strengthening our
position as the go-to provider for nutrition customers around the
globe, and we are excited about the benefits for customers and
shareholders alike.”
“We are extremely excited to have reached this agreement, and
look forward to joining the ADM team and contributing Rodelle’s
expertise in vanilla products to another well-established flavoring
industry company,” said Joe Basta, Rodelle co-founder. “The Rodelle
brand and our loyal customers will benefit greatly from ADM’s
technical expertise and commercial capabilities. The core of our
business will remain unchanged, and our customers can expect the
high-quality vanilla and baking ingredients they have relied on for
over 80 years.”
“We see a natural synergy between Rodelle’s vertically
integrated supply chain that brings consumers closer to vanilla
farmers and ADM’s global reach and technical expertise in the
flavor and food ingredient industry,” added Rodelle co-founder Dan
Berlin. “In joining forces with ADM, Rodelle will be able to
leverage even more value for our customers, employees, farmers and
shareholders."
ADM anticipates completing the transaction, which is subject to
regulatory approval, in the third quarter.
Forward-Looking Statements
Some of the above statements constitute forward-looking
statements. ADM’s filings with the SEC provide detailed information
on such statements and risks, and should be consulted along with
this release. To the extent permitted under applicable law, ADM
assumes no obligation to update any forward-looking statements.
About ADM
For more than a century, the people of Archer Daniels Midland
Company (NYSE: ADM) have transformed crops into products that serve
the vital needs of a growing world. Today, we’re one of the world’s
largest agricultural processors and food ingredient providers, with
approximately 31,000 employees serving customers in more than 170
countries. With a global value chain that includes approximately
500 crop procurement locations, 270 ingredient manufacturing
facilities, 44 innovation centers and the world’s premier crop
transportation network, we connect the harvest to the home, making
products for food, animal feed, industrial and energy uses. Learn
more at www.adm.com.
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