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Archer Daniels Midland changes portfolio

Archer Daniels MidlandArcher Daniels Midland (ADM) announced an agreement to sell the South American fertilizer business, pursuit of the sale of the chocolate business, and the acquisition of the remaining stake of Alfred C. Toepfer International GmbH.

ADM has signed an agreement to sell its fertilizer business in Brazil and Paraguay to The Mosaic Company (NYSE: MOS) for $350 million. The transaction consists primarily of five ADM-owned blending facilities in Brazil and Paraguay. The purchase price includes $150 million in working capital.

As part of the transaction, ADM will purchase fertilizer from Mosaic after the closing and will continue to supply certain fertilizer customers in Brazil and Paraguay. The proposed sale will be contingent on customary regulatory approvals.

ADM will pursue the sale of its chocolate business, while retaining the majority of its cocoa press operations. The company has engaged advisers to facilitate the sale process.

ADM has chocolate manufacturing operations in Hazleton, Pa.; Milwaukee, Wis.; Georgetown, Ontario; Liverpool, U.K.; Manage, Belgium; and Mannheim, Germany.

ADM will acquire the remaining 20 percent minority stake of Alfred C. Toepfer International for €83 million, representing about 1.1x net book value. The proposed transaction, which is occurring through the exercise of a put agreement by Union InVivo, will be subject to customary regulatory approvals. Since 2002, ADM has owned 80 percent of Toepfer; InVivo has held the remaining 20 percent since 2010.


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