USA – Archer-Daniels-Midland (ADM), a global grains merchant, has announced its strategic move to acquire Revela Foods, a Wisconsin-based developer and manufacturer specializing in dairy flavor ingredients and solutions.
The acquisition is part of ADM’s ongoing effort to diversify its traditional grain handling business into the flavors and nutrition foods sector.
ADM has been actively pursuing expansion in the flavors industry since its acquisition of WILD Flavors for US$3 billion in 2014.
The latest addition, Revela Foods, is expected to strengthen ADM’s position in the $1.8 billion global dairy flavors segment.
Revela Foods, with projected sales of nearly US$240 million in 2023, is renowned for its innovative enzyme technology, driving growth through a range of clean-label dairy flavor formulations.
These formulations cater to various applications, including snacks, frozen meals, sauces, dressings, soups, seasonings, and desserts.
Revela’s success has been further propelled by its portfolio company status under New Heritage Capital since 2019.
“ADM has a strong presence in the North America savory flavors segment, and we’re excited to work with the impressive Revela team to expand our opportunities there,” Calvin McEvoy, ADM’s president of global flavors stated expressing enthusiasm about the collaboration.
The acquisition aligns with ADM’s goal to offer comprehensive solutions to customers seeking both great flavors and clean labels.
“We are excited to partner with ADM to further Revela’s reputation as an innovative, turnkey provider of dairy flavor ingredients and solutions,” Terry Schneider, Revela’s chief executive officer, added.
“We believe joining the ADM family will allow us to offer even broader solutions to our customers and will provide our employees with even greater opportunities for advancement.”
Ian Pinner, president of ADM’s Nutrition business, emphasized the significance of the flavors business in ADM’s growth strategy.
“Our flavors business is an important pillar of our Nutrition growth strategy, and we are continuing to add to our flavors pantry to ensure we remain the partner of choice for customers around the globe,” he stated.
The acquisition is projected to close in early 2024, subject to customary closing conditions and regulatory approvals. ADM did not disclose the financial details of the deal.
As ADM continues to evolve into a global leader in nutrition, this strategic acquisition marks another milestone in its journey to offer diverse, high-quality solutions to meet the evolving needs of consumers worldwide.
