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ADM extends global probiotics reach with Deerland acquisition

Article-ADM extends global probiotics reach with Deerland acquisition

Aligning pieces in an acquisition
The acquisition significantly expands ADM’s portfolio of ingredients and solutions to help meet $775 billion global demand in health and wellness.

ADM is acquiring Deerland Probiotics & Enzymes for an undisclosed amount. The transaction, subject to regulatory approval, is expected to be completed in the coming weeks. Deerland operates five manufacturing facilities, one fermentation facility, and eight research and development and quality control laboratories globally. Upon completion of the deal, Deerland’s approximately 320 colleagues will transfer to ADM.

Deerland is a global provider of probiotic and dietary supplements using probiotic, prebiotic, and enzyme technology, including 12 branded product lines serving customers in areas including digestive health, immune health, women’s health, food intolerance, sports nutrition, cellular repair, and systemic and cardiovascular health. The company’s products and solutions include spore probiotics, which offer enhanced stability for a wider use in food and beverage, pet nutrition and supplement applications.

Jackie Anderson, Director, External Communications, ADM, commented: “The microbiome is one of our core growth platforms. In recent years, we’ve invested in the fast-growing market of food, beverages and supplements that enhance health and wellness, including acquisitions like the additions of Protexin and Biopolis, organic projects such as the significant expansion in probiotics production at our Valencia facility, and our recently-announced joint venture and previously-announced partnership with Vland. We are excited about the huge potential in this segment, and Deerland Probiotics & Enzymes is a great fit for ADM.”

The addition of Deerland’s capabilities and portfolio should offer synergies for ADM’s Health & Wellness business and its Nutrition business unit, which have seen strong financial gains in 2021. On Oct. 26, ADM released its financial results for the quarter ended Sept. 30, 2021, which showed Q3 net earnings of $526 million; adjusted net earnings of $548 million. Its Nutrition division delivered another strong performance, with revenue growth of 17% helping drive 20% higher year-over-year operating profits, and Human Nutrition delivering 9% higher profits. Health & Wellness results were higher on robust sales growth in bioactives and fiber.