WINTER HAVEN, Fla. — Agricultural behemoth Archer Daniels Midland Co. has completed its acquisition of Florida Chemical Co., a citrus oils and flavors manufacturer, for $175 million in cash.
Chicago-based ADM, announced the deal in January pending regulatory approval and on March 1 announced it had completed the purchase, according to company statements on its website. The company has its North American headquarters in Decatur, where it is the city's largest employer.
The statements did not disclose the purchase price, but Florida Chemical's parent company, Flotek Industries Inc. of Houston, reported the $175 million cash price on its website. It also reported net proceeds of $165 million after closing costs.
Florida Chemical was founded in 1942 by William Schulz and his son, Henry "Bert" Schulz, who pioneered using the citrus extract d-limonene as an industrial solvent. The company later expanded into citrus flavors and oils.
Flotek, a chemical company serving the petroleum industry, purchased Florida Chemical in May 2013 in a cash-stock deal valued at $102.5 million.
The deal would allow Florida Chemical to expand production and distribution of natural, biodegradable chemicals for use in fracking and other oil drilling procedures, CEO Josh Snively said at the time.
Snively could not be reached for comment.
In its media statements, ADM indicated more interest in the Winter Haven company's citrus extract business.
"Citrus is a key flavor for the beverage industry, and one of the essential flavors -- along with vanilla and mint -- in any complete solution portfolio for today's evolving consumer needs," said Vince Macciocchi, senior vice president and president of ADM's Nutrition division, in the March 1 press statement. "By adding industry-leading citrus capabilities to ADM's already best-in-class portfolio of natural, clean-label ingredients, we can now provide one-stop shopping for essential flavors as well as an unparalleled array of other innovative food and beverage products, solutions and systems."
The deal strengthens ADM's position in the food additive market, he added.
Florida Chemical, "a pioneer in the citrus flavor industry, grew into one of the largest producers in the world, creating 100 percent natural flavor ingredients for a wide range of food and beverage applications," said Snively, now ADM's president of its Global Citrus division, in the statement. "Now, we are combining FCC's 75-year heritage and deep understanding and expertise of the science and business of citrus with ADM's extensive global resources to offer an even wider array of products, solutions and systems to more customers around the world."
Snively did not return calls from The Ledger on Thursday.
Florida Chemical employed 60 people at its 55,000-square-foot Winter Haven facility and 20 workers at a Texas plant in 2013, according to the most recent figures available.
Last year ADM stood as one of the world's largest agricultural processors and food-ingredient providers with approximately 32,000 employees serving customers in more than 170 countries. It had suppliers involving about 450 crops and had 270 food- and feed-ingredient manufacturing facilities and 46 research centers worldwide.
ADM reported 2018 annual revenues of $64.3 billion and a profit of $1.8 billion, or $3.19 per share, according to the company's filing with the U.S. Securities and Exchange Commission. That represented a 6 percent increase in revenue from $60.8 billion and 13.5 percent increase in profits from 2017.