CHICAGO (Reuters) — Archer Daniels Midland plans to buy Specialty Commodities Inc. for US$170 million in its second deal for a health-focused ingredient supplier in three months.
Specialty Commodities of Fargo, North Dakota, which is majority owned by private equity firm Goldner Hawn Johnson & Morrison, buys natural and organic ingredients.
The company then distributes ingredients to customers that make snacks, cereal, pet food and other products.
ADM recently completed a C$3.3 billion deal for Swiss-German natural ingredient company Wild Flavors.
It said the acquisitions would help reduce the volatility of its earnings, which have traditionally been linked to the booms and busts of crop production.
ADM said it expected the Specialty Commodities deal, which is subject to regulatory approval, to close in the coming weeks.
