WASHINGTON (dpa-AFX) - U.S. grain processor Archer Daniels Midland Co. (ADM), Tuesday agreed to sell its global chocolate business to Cargill for $440 million.
The transaction includes Archer Daniels' three chocolate plants in North America and three in Europe. The deal is expected to close in the first half of 2015, subject to approvals from United States and the European Union.
'As part of our ongoing portfolio management, we considered several options to strengthen the returns of this part of our business,' said ADM Chairman and CEO Patricia Woertz. 'The sale of the chocolate business helps improve ADM's returns and will allow us to redeploy capital for higher-return investments.'
In April, Archer Daniels announced its intention to sell off its chocolate business, after attempts to sell its global cocoa and chocolate business did not materialize.
Meanwhile, Archer Daniels plans to end cocoa processing operations at Hazleton, Pennsylvania, which will result in the elimination of about 90 positions. Archer Daniels is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural products.
'This acquisition is a major milestone in Cargill's chocolate growth strategy and will help us better serve our customers in North America and Europe,' said Bryan Wurscher, president Cargill Cocoa and Chocolate North America.
ADM is currently trading at $50.37, up $0.51 or 1.02%, on the NYSE.
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