ADM to Focus on Organic Growth After Acquisitions
USAgNet - 11/14/2019
Grain trader Archer Daniels Midland Co ADM does not expect to continue its aggressive strategy of acquisitions in the next few years and will instead focus on organic growth, a senior official said on Wednesday.
"With this level of acquisitions we have had, I don't think you will see ADM being a very aggressive M&A investor over the next few years," Ismael Roig, Europe, Middle East and Africa President Archer Daniels Midland Co told the Global Grain conference in
He said the company would instead focus on optimizing its business and driving efficiency, and look for opportunities in value-added sectors including nutrition, reports Reuters.
The firm has made $7 billion acquisitions globally in recent years, including $5 billion in EMEA, Roig said.
ADM purchased natural food ingredients company Wild Flavors for $3 billion in 2014 and earlier this year it took over animal nutrition business Neovia for $1.7 bln as part of the U.S. farm giant's strategy to expand in the fast-growing animal nutrition sector.