NEW YORK (TheStreet) -- Archer-Daniels-Midland Co. (ADM) announced today that it is acquiring Wild Flavors GmbH, giving ADM the ability to offer food and beverage companies a comprehensive suite of systems to enhance and improve their products.
In an all-cash transaction valued at approximately 2.3 billion euros enterprise value, ADM will pay 2.2 billion euros to Wild Flavors shareholders Dr. Hans-Peter Wild and funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR), and assume approximately 0.1 billion euros of net debt.
Shares of ADM are flat in pre-market trade.
TheStreet Ratings team rates ARCHER-DANIELS-MIDLAND CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCHER-DANIELS-MIDLAND CO (ADM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: