USA – American multinational food corporation, ADM has agreed to purchase US health and wellness company Deerland Probiotics and Enzymes for an undisclosed sum.
ADM said the transaction will significantly expand its broad portfolio of health and wellness products and solutions.
Deerland is a global provider of supplements that use probiotic, prebiotic, and enzyme technology and serves consumers in sectors such as digestive, immune and women’s health, and food intolerance, among others.
Deerland’s products include spore probiotics, which offer enhanced stability for wider use in food and beverage, pet nutrition, and supplement applications.
The company operates five manufacturing sites and one fermentation facility, as well as eight research and development laboratories globally.
“Deerland Probiotics and Enzymes is a leader in probiotic, prebiotic, and enzyme technology, with global sales and manufacturing in the US and Europe, and is a perfect fit for our growing portfolio of functional ingredients and solutions for health-conscious consumers,” said Juan Luciano, ADM’s Chairman and CEO.
With the revenue contribution from the addition of Deerland, annualized revenue for ADM’s Health & Wellness business will exceed US$500 million, ADM said.
“We expect the addition of the Deerland capabilities and portfolio to deliver synergies for our health and wellness business and support growth across our nutrition business unit,” Luciano added.
The transaction whose financial terms were not disclosed is subject to regulatory approval and is expected to be completed in the coming weeks.
The Deerland acquisition is the latest in a series of ADM strategic investments to build a full-scale global Health & Wellness business to help meet growing demand for food, beverages and supplements that enhance health and well-being.
The company also recently acquired Protexin and Biopolis and has invested to expand probiotics production at its plant in Valencia, Spain.
Investment in health and wellness has started to deliver for ADM. In its recently released financial results for Q3, ADM’s Nutrition division delivered another strong performance, with revenue growth of 17% helping drive 20% higher year-over-year operating profits.
Human Nutrition delivered 9% higher profits while Animal Nutrition profits were nearly double the year-ago period, driven primarily by strength in amino acids as well as feed additives and ingredients.
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