UK – Archer Daniels Midland Company has announced that it has agreed to purchase the remaining 50% stake in Gleadell Agriculture Ltd, a company it jointly owns with InVivo.
The deal includes Gleadell’s wholly owned subsidiary Dunns (Long Sutton) Ltd, which together with Gleadell will be merged with ADM Arkady, ADM’s UK destination marketing business, and ADM Direct UK, ADM’s specialist combinable crop origination business to create the newly formed entity.
ADM, which trades food and other commodities worldwide said it has also reached a decision to combine its existing UK origination entities to create ADM Agriculture Ltd, strengthening its presence in the United Kingdom.
With the transaction, ADM is in a position to 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.
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 .Gary McGuigan, ADM’s president of Global Trade.
Established in 1880, Gleadell Agriculture Ltd. is a leading supplier of combinable crops to UK millers and exports grains, oilseeds and pulses to EU markets.
Its competitors include Cargill and Associated British Foods joint venture Frontier Agriculture and co-operative Openfield.
The company sources crops directly from UK farmers and supplies certified seed and fertilizers.
Key assets include port storage and ship loading operations along with extensive pulse and agricultural seed processing and storage.
ADM expects the deal to close during the first quarter of 2019, subject to regulatory law.
ADM had last year initiated talks to acquire rival Bunge Ltd to create one of the world’s largest agricultural companies, but backed down due to unknown reasons.