Dive Brief:
- ADM is buying Specialty Commodities Inc., a buyer/processor of nuts, fruits, seeds and other healthy ingredients, for $170 million.
- SCI, based in Fargo, ND, operates two processing facilities in California, has sourcing agreements around the world, and sells ingredients to food processors in the ice cream, nutrition bar, cereal, and other markets.
- SCI will be absorbed into ADM's new Wild Flavors and Specialty Ingredients business unit, which was formed with the $3.1 billion acquisition earlier this year of Wild Flavors.
Dive Insight:
If there was any doubt about ADM's intentions in the ingredient space following the purchase of Wild Flavors, the acquisition of SCI should lay those to rest. ADM is clearly moving heavily into the "natural" ingredients space — marking a clear expansion beyond its traditional ingredients businesses in high-fructose corn syrup, cocoa powders, emulsifiers and the like.
