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Archer Daniels to Enhance Citrus Flavors With the FCC Buyout
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Archer Daniels Midland Company (ADM - Free Report) recently agreed to buy Florida Chemical Company (“FCC”) to enhance its nutrition portfolio, with citrus ingredients and flavors. FCC is part of Flotek Industries, Inc. (FTK - Free Report) , the leading developer and supplier of chemistry and services to the oil and gas industry. Flotek will sell its FCC business, which operates as its Consumer and Industrial Chemistry Technologies segment, worth $175 million in cash. The deal is subjected to regulatory approvals and is likely to close in the first quarter of 2019.
Following the completion of the deal, roughly 75 employees of FCC will be transferred to the buyer. Being specialized in citrus-based oils and ingredients, FCC offers high-value and exclusive citrus flavors, with specialty terpenes and formulated products. Further, these products are natural and have less sugar content in food and beverages to suit growing needs of consumers. In fact, FCC’s products consist of individual citrus flavor materials and essential oils, flavor enhancers and citrus flavor modifiers along with natural or artificial sweeteners.
Notably, FCC is serving customers with premium citrus products for over three-quarters of a century. As citrus is among the fastest-growing flavors, we believe that Archer Daniels’ portfolio is likely to benefit from FCC’s rich heritage and expertise, apart from its huge customer base. In fact, these factors, together with Archer Daniels’ research and development capabilities, will help citrus flavors expand, thereby efficiently catering to consumer needs.
Being the leader in natural flavors for food and beverages, Archer Daniels believes this buyout to help it gain leadership in citrus flavors, hence, strengthening its nutrition portfolio and overall market share. With the buyout of WILD, Archer Daniels has been reinforcing its foothold in the nutrition space, with the expansion of its specialty ingredients portfolio, including vanilla, mint and other savory flavors.
Management will continue to build a strong tie with Flotek via a long-term supply agreement and the joint pursuit of next-generation chemistry technologies.
We note that Archer Daniels regularly undertakes initiatives to manage its business portfolio, which are expected to help in realizing value to boost returns. Recently, management completed acquisitions of Rodelle and Protexin. It also remains on track to close the Neovia buyout based in France, which should aid in boosting animal nutrition solutions for the feed industry. Last year, the company signed a joint development agreement with the biotech company of China — Qingdao Vland Biotech Group Co., Ltd. All these reflect Archer Daniels’ focus on improving its portfolio in the Nutrition space.
Going forward, Archer Daniels remains focused on five major platforms, animal nutrition, health & wellness, carbohydrates, human nutrition, and taste to drive growth.
A glimpse of Archer Daniels’ price performance in the past year depicts that this Zacks Rank #1 (Strong Buy) stock has gained 6.5% against the industry’s 5% decline.
Want More Solid Stocks in the Consumer Staples Space? Check These
Campbell Soup Company (CPB - Free Report) pulled off an average positive earnings surprise of 13.7% in the trailing four quarters. The company presently carries a Zacks Rank #2 (Buy).
McCormick & Company, Incorporated (MKC - Free Report) currently carries a Zacks Rank of 2. Further, the company has an expected long-term earnings growth rate of 9%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Archer Daniels to Enhance Citrus Flavors With the FCC Buyout
Archer Daniels Midland Company (ADM - Free Report) recently agreed to buy Florida Chemical Company (“FCC”) to enhance its nutrition portfolio, with citrus ingredients and flavors. FCC is part of Flotek Industries, Inc. (FTK - Free Report) , the leading developer and supplier of chemistry and services to the oil and gas industry. Flotek will sell its FCC business, which operates as its Consumer and Industrial Chemistry Technologies segment, worth $175 million in cash. The deal is subjected to regulatory approvals and is likely to close in the first quarter of 2019.
Following the completion of the deal, roughly 75 employees of FCC will be transferred to the buyer. Being specialized in citrus-based oils and ingredients, FCC offers high-value and exclusive citrus flavors, with specialty terpenes and formulated products. Further, these products are natural and have less sugar content in food and beverages to suit growing needs of consumers. In fact, FCC’s products consist of individual citrus flavor materials and essential oils, flavor enhancers and citrus flavor modifiers along with natural or artificial sweeteners.
Notably, FCC is serving customers with premium citrus products for over three-quarters of a century. As citrus is among the fastest-growing flavors, we believe that Archer Daniels’ portfolio is likely to benefit from FCC’s rich heritage and expertise, apart from its huge customer base. In fact, these factors, together with Archer Daniels’ research and development capabilities, will help citrus flavors expand, thereby efficiently catering to consumer needs.
Being the leader in natural flavors for food and beverages, Archer Daniels believes this buyout to help it gain leadership in citrus flavors, hence, strengthening its nutrition portfolio and overall market share. With the buyout of WILD, Archer Daniels has been reinforcing its foothold in the nutrition space, with the expansion of its specialty ingredients portfolio, including vanilla, mint and other savory flavors.
Management will continue to build a strong tie with Flotek via a long-term supply agreement and the joint pursuit of next-generation chemistry technologies.
We note that Archer Daniels regularly undertakes initiatives to manage its business portfolio, which are expected to help in realizing value to boost returns. Recently, management completed acquisitions of Rodelle and Protexin. It also remains on track to close the Neovia buyout based in France, which should aid in boosting animal nutrition solutions for the feed industry. Last year, the company signed a joint development agreement with the biotech company of China — Qingdao Vland Biotech Group Co., Ltd. All these reflect Archer Daniels’ focus on improving its portfolio in the Nutrition space.
Going forward, Archer Daniels remains focused on five major platforms, animal nutrition, health & wellness, carbohydrates, human nutrition, and taste to drive growth.
A glimpse of Archer Daniels’ price performance in the past year depicts that this Zacks Rank #1 (Strong Buy) stock has gained 6.5% against the industry’s 5% decline.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Want More Solid Stocks in the Consumer Staples Space? Check These
Campbell Soup Company (CPB - Free Report) pulled off an average positive earnings surprise of 13.7% in the trailing four quarters. The company presently carries a Zacks Rank #2 (Buy).
McCormick & Company, Incorporated (MKC - Free Report) currently carries a Zacks Rank of 2. Further, the company has an expected long-term earnings growth rate of 9%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>