ADM to Acquire Gleadell Agriculture Ltd and Dunns Ltd, Combining Existing UK Origination Entities to Create ADM Agriculture Ltd
- In combination with ADM’s current UK Origination business, this will further increase customer service and processing capabilities, widen existing UK footprint and strengthen ADM’s presence nationwide.
ROLLE, January 17, 2019 – Archer Daniels Midland Company (NYSE: ADM) today announced it has signed an agreement to purchase the remaining 50 percent stake of Gleadell Agriculture Ltd., currently jointly owned by ADM and InVivo, including Gleadell’s wholly owned subsidiary Dunns (Long Sutton) Ltd. ADM will merge Gleadell and Dunns with ADM Arkady, ADM’s UK destination marketing business, and ADM Direct UK, ADM’s specialist combinable crop origination business, to create ADM Agriculture Ltd, thus strengthening ADM’s presence across the UK.
The transaction will increase ADM’s 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.
Established in 1880, Gleadell Agriculture Ltd. is a leading supplier of combinable crops to UK millers, feed compounders and other consumers, and a major exporter of grains, oilseeds and pulses to EU markets and further afield. 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.
“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,” said Gary McGuigan, ADM’s president of Global Trade. “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.”
The deal, which is subject to regulatory review, is expected to close during the first quarter of 2019.