NEW YORK (TheStreet) -- Shares of Archer-Daniels-Midland Co. (ADM) are up 1.30% to $50.51 after the company announced today an agreement to sell its global chocolate business to Cargill for $440 million, subject to a customary working-capital adjustment.
The proposed sale is expected to close during the first half of 2015 and is subject to regulatory approval and other customary conditions.
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Included in the sale are chocolate manufacturing operations located in several locations in the U.S. and abroad. Approximately 700 employees will transfer to Cargill with the sale.
At the time of closing, ADM will be ending cocoa processing operations at Hazleton, PA, resulting in the elimination of about 90 positions there.
TheStreet Ratings team rates ARCHER-DANIELS-MIDLAND CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCHER-DANIELS-MIDLAND CO (ADM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."