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Archer Daniels Midland to sell chocolate business to Cargill for $440m
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Monday, 08 September, 2014, 08 : 00 AM [IST]
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Hazleton
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fiogf49gjkf0d Archer Daniels Midland Company (ADM) announced an agreement to sell its global chocolate business to Cargill for $440 million, subject to a customary working capital adjustment. The proposed sale is expected to close during the first half of 2015, and is subject to regulatory approval and other customary conditions.
“As part of our ongoing portfolio management, we considered several options to strengthen the returns of this part of our business,” said Patricia A Woertz, chairman and chief executive officer, ADM, adding that the sale would help improve ADM’s returns and allow them to redeploy capital for higher-return investments.
Included in the sale are the chocolate-manufacturing operations located in Hazleton, Pennsylvania; Milwaukee, Wisconsin; Georgetown, Ontario; Liverpool, United Kingdom; Manage, Belgium, and Mannheim, Germany. With the sale, approximately 700 employees would transfer to Cargill.
At the time of closing, ADM would be ending cocoa processing operations in Hazleton. This would result in the elimination of about 90 positions at that location. The company would offer the affected employees severance packages and outplacement assistance.
Following the transaction, ADM Cocoa’s 1,560 employees would continue to supply deZaan cocoa ingredients to its customers across the globe from its cocoa operations in Mississauga, Ontario; Koog aan de Zaan and Wormer, the Netherlands; Mannheim; Ilhéus, Brazil; Abidjan, Côte d'Ivoire; Kumasi, Ghana; and Singapore.
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