Archer-Daniels-Midland Co. announced Jan. 17 that it will acquire the 50% stake in food distributor Gleadell Agriculture Ltd. it did not previously own for an undisclosed amount.
The agricultural products company signed a deal to buy the stake held by InVivo Corp. in Gleadell, including the U.K. company's wholly owned subsidiary Dunns (Long Sutton) Ltd.
Archer Daniels Midland plans to merge Gleadell and Dunns with its two existing businesses in the U.K. to create ADM Agriculture Ltd. The company operates its combinable crop origination unit, ADM Direct UK, and its destination marketing business, ADM Arkady in the U.K.
The Chicago-based company said the deal would strengthen its presence in the U.K. by increasing its origination, storage and destination marketing capabilities.
The deal, which is subject to regulatory review, is expected to close during the first quarter of 2019.
The acquisition comes shortly after Archer Daniels Midland announced it would buy citrus-based flavors and fragrances company Florida Chemical Co. Inc.
CEO Juan Luciano told Reuters Jan. 16 that the company would not pursue any "monster" acquisitions at present due to high valuations and competition, and would instead focus on smaller deals and joint ventures.