Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to acquire Rodelle Inc., a premium originator, processor and supplier of vanilla products.
Rodelle, founded in 1936 and based in Fort Collins, Colorado, originates, processes and sells premium vanilla products, including organic and traditional extracts, beans, alcohol-free flavor and paste. The company also sells non-vanilla products, including flavorings, extracts, spice blends and organic spices. Rodelle provides ingredient solutions to major food and beverage makers, as well as directly to consumers, with a premium retail brand that can be found in the baking aisle of most grocery stores in North America. The company’s sales last year were approximately $40 million.
Rodelle’s supply chain is unique among major vanilla processors. In Madagascar, the company owns a stake in Federation Sahanala Vanille — a joint venture between Rodelle and a partnership of local associations that now includes more than 2,100 registered vanilla farmers — and is capable of producing industry-leading volumes of certified organic vanilla. Rodelle also has a strategic partnership with Gourmet Gardens, providing sourcing of vanilla in Uganda. By removing the third parties that are typical in other vanilla processor supply chains, Rodelle is able to offer competitive pricing and a reliable supply.
“With the acquisition of Rodelle, we are continuing to grow our value chain by enhancing what is already one of the most comprehensive portfolios in the flavor industry,” said Scott Olstad, president of ADM’s North American WILD Flavors business. “Not only is vanilla one of the most popular and enduring flavors, but Rodelle’s integrated supply chain will allow us to offer an unparalleled range of certified organic and natural vanilla ingredients for today’s health-conscious consumers. The addition of Rodelle will give us immediate capabilities in both the retail and commercial vanilla markets, and we see significant opportunities to expand the business. We’re looking forward to working with the great Rodelle team to help build on their impressive success.”
Rodelle has about 70 full-time employees. The company operates a 65,000-square-foot extraction and processing facility in Fort Collins; the modern plant was built in 2008 and expanded in 2014, and includes labs for testing and R&D.
“This acquisition represents another important step in our strategy to create shareholder value,” said Vince Macciocchi, ADM’s senior vice president and president, Nutrition. “Rodelle will be a key part of our integrated human and animal Nutrition business — a business that we are focused on growing. Earlier this summer, we announced two important additions to our Nutrition business unit: Neovia, a global leader in value-added animal nutrition products, and Probiotics International Limited, a U.K.-based provider of probiotic supplements for human, pet and production animal use. With these and other transactions, we are strengthening our position as the go-to provider for nutrition customers around the globe, and we are excited about the benefits for customers and shareholders alike.”
“We are extremely excited to have reached this agreement, and look forward to joining the ADM team and contributing Rodelle’s expertise in vanilla products to another well-established flavoring industry company,” said Joe Basta, Rodelle co-founder. “The Rodelle brand and our loyal customers will benefit greatly from ADM’s technical expertise and commercial capabilities. The core of our business will remain unchanged, and our customers can expect the high-quality vanilla and baking ingredients they have relied on for over 80 years.”
“We see a natural synergy between Rodelle’s vertically integrated supply chain that brings consumers closer to vanilla farmers and ADM’s global reach and technical expertise in the flavor and food ingredient industry,” added Rodelle co-founder Dan Berlin. “In joining forces with ADM, Rodelle will be able to leverage even more value for our customers, employees, farmers and shareholders."
ADM anticipates completing the transaction, which is subject to regulatory approval, in the third quarter.
Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with approximately 31,000 employees serving customers in more than 170 countries. With a global value chain that includes approximately 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, industrial and energy uses. Learn more at www.adm.com.
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