Archer Daniels Midland Company (ADM) has announced its agreement to acquire Florida Chemical Company (FCC), a division of Flotek Industries that specializes in citrus-based flavors and fragrances.
Based out of Winter Haven, Florida, FCC provides premium citrus ingredients and produces a wide range of high-value citrus flavor ingredients, specialty terpenes and formulated products primarily for the flavor, fragrance and consumer products markets. They include individual citrus flavor materials and essential oils, flavor enhancers for grapefruits and other citrus, and citrus flavor modifiers to improve the quality and taste of food and beverages with natural or artificial sweeteners.
The deal is subject to regulatory approval; it is expected to close in the first quarter of 2019. When the transaction is finalized, FCC’s approximately 75 employees will transfer to ADM.
“ADM is already a leader in natural flavors for food and beverages, offering a wide variety of high-value products and solutions in areas such as vanilla and mint, and this acquisition will place us in a leadership position for citrus flavors as well,” said Vince Macciocchi, president of ADM’s nutrition business unit. “Citrus is one of the fastest-growing flavor categories, and the single most important taste profile for beverages, and no one in North America does citrus better than Florida Chemical Company.”
“ADM has long been an admired industry innovator whose global nutrition portfolio capabilities are second-to-none,” added Josh Snively, president of FCC and Flotek’s executive vice president of operations. “Florida Chemical’s citrus expertise, together with our combined leadership in research and development, will allow us to strategically accelerate and expand our diverse offering to a wide and growing customer base. Additionally, I am pleased that we will continue our strong relationship with Flotek through both a long-term supply agreement and through the joint pursuit of next-generation chemistry technologies for the energy and agriculture industries.”
