NEW YORK (TheStreet) -- Archer-Daniels-Midland said it will buy Swiss natural ingredient company Wild Flavors for $3.1 billion in cash and debt, as it seeks to expand its offerings to food and beverage companies.
ADM said it expects to create a new business segment called Wild Flavors and Specialty Ingredients with sales approaching $2.5 billion. It said the acquisition will give the company the ability to offer food and beverage companies a comprehensive suite of systems to enhance and improve their products.
In a statement, ADM Chairman and CEO Patricia Woertz said the deal is consistent with the company's long-term strategy to diversify its product portfolio and complements the investments it recently made in Brazil and China. Woertz said the acquisition will meet the company's return objectives, with estimated cost and revenue synergies of 100 million euros in three years.
ADM will pay about 2.2 billion euros to Wild Flavors shareholders Dr. Hans-Peter Wild and funds affiliated with private-equity firm Kohlberg Kravis Roberts. The deal is contingent upon regulatory approvals and is expected to close by the end of the year.
In New York, I'm Brittany Umar for TheStreet.
-- Written by Brittany Umar in New York.