ADM Adds New Capabilities To Its Industry-Leading Flavor Business With Agreement To Acquire Revela Foods; Revela, With Projected Sales Of Almost $240M In 2023; Financial Terms Of The Transaction Not Disclosed
Portfolio Pulse from Benzinga Newsdesk
ADM (NYSE:ADM) has announced an agreement to acquire Revela Foods, a developer and manufacturer of dairy flavor ingredients. Revela is projected to have sales of $240 million in 2023 and will enhance ADM's capabilities in the $1.8 billion dairy flavors segment. Revela operates three production facilities in the U.S. Midwest and has been a portfolio company of New Heritage Capital since 2019. The acquisition, which is subject to regulatory approvals, is expected to be completed early in 2024. Financial terms were not disclosed. ADM has been expanding its flavor portfolio since acquiring WILD Flavors in 2014, with multiple acquisitions and global investments.
December 18, 2023 | 7:13 pm
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POSITIVE IMPACT
ADM's acquisition of Revela Foods is expected to strengthen its position in the dairy and savory flavors market, with Revela's projected $240M sales in 2023 potentially contributing to ADM's revenue growth.
The acquisition of Revela Foods is likely to have a positive short-term impact on ADM's stock price due to the expected revenue growth and expansion of its flavor portfolio. The deal aligns with ADM's growth strategy in the nutrition sector and adds innovative technology to its offerings. The positive market perception of growth through strategic acquisitions, especially in lucrative segments like dairy flavors, is likely to be viewed favorably by investors.
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