ADM Buying Rest of Toepfer
Archer Daniels Midland will buy the 20% stake it does not already own in European grain business Alfred C Toepfer.
Decatur, Ill./Press Release -- Archer Daniels Midland (ADM) will pay about $124 million to buy the 20% stake it does not already own in European grain business Alfred C Toepfer.
French agricultural co-operative group InVivo, which has been a partner with ADM in Toepfer International for about four years, is selling its one fifth stake for marginally more than its book value. Toepfer trades about 53 million tons annually through its Hamburg office and 36 supporting divisions worldwide and rates as one of Australia's notable second tier grain marketing business, originally established in Australia in partnership with Elders about seven years ago, and now operating independently as a grain accumulator with State based offices and Elders providing an agency conduit to farmers.
ADM has held a majority stake in Toepfer since 2002. ADM chairman and chief executive officer Patricia Woertz said ADM had benefited from its big investment in Toepfer for more than a decade and full ownership would allow it to strengthen this business.
Toepfer had an important presence in "critical origination areas as well as growing destination markets," she said. It would be fully integrated into ADM's global origination network.
"We are committed to ongoing portfolio management to realise value from our businesses and to deploy our capital where it can best improve returns," she explained.
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