ADM has signed an agreement to purchase the remaining 50% stake of UK-based grain trader Gleadell Agriculture, currently jointly owned by ADM and InVivo, including Gleadell’s wholly owned subsidiary Dunns.
Gleadell will be merged with Dunns and ADM Arkady, ADM’s UK destination marketing business, as well as ADM Direct UK, ADM’s specialist combinable crop origination business, to create ADM Agriculture.
The restructuring forms part of ADM efforts to bolster its presence in the UK.
ADM said the transaction will increase its origination, storage and destination marketing capabilities in the UK, allowing it to serve as the trading partner of choice for even more farmers and customers.
Established in 1880, Gleadell Agriculture is a supplier of combinable crops to UK millers, feed compounders and other consumers, and an exporter of grains, oilseeds and pulses to EU markets and further afield.
The company sources crops directly from UK farmers and supplies certified seed and fertilisers. Key assets include port storage and ship loading operations along with pulse and agricultural seed processing and storage.
Gary McGuigan, ADM president of global trade, said: “With significant storage and processing capability and a longstanding reputation for being a safe and trusted trading partner, Gleadell and Dunns will be great additions to our business in the UK.
“We are excited to expand our capabilities, not only to continue our strategic growth, but also to support our farmers and our customers as they work to address fast-growing consumer demand.”
It is expected the deal will close in the first quarter of 2019.
In its most recent quarterly results, Chicago-headquartered ADM saw its operating profits surge, thanks in part to the strong performance of its oilseeds division.
In the three months to 30 September 2018, the company reported operating profits of $881 million, an 81.6% increase. Meanwhile, net revenue was up 6.5% to $15.8 billion.
© FoodBev Media Ltd 2024
