Archer Daniels Midland Company
), last week announced that it has successfully completed the
acquisition of the remaining 20% minority stake of Alfred C.
Toepfer International from Union InVivo. Going ahead with its
ongoing portfolio management, Archer Daniels had first revealed its
intension of buying the stake on Apr 15, 2014.
Archer Daniels paid €83 million or approximately $115 million
for the remaining 20% stake of Toepfer International. This world's
largest corn producing company has been accumulating the stake of
Toepfer International since 2002 and had acquired 80% of shares
before the recent transaction.
Operating worldwide through a network of 37 offices, Toepfer
International specializes in trading agricultural products such as
biomass, pulses, feedstuffs, oilseeds, grains, vegetable oils, and
fertilizers; providing supply chain solutions such as risk
management, logistics, quality management, finance and market
analysis. Apart from this, the company provides inland, river and
export facilities in the United States, Argentina, Hungary,
Bulgaria, Romania, Canada, and Ukraine.
The full integration of Toepfer International operations into
Archer Daniels will facilitate the latter to provide full value
chain services i.e. from origination to destination of Agricultural
products. We believe the strategic initiative will enhance Archer
Daniels' global origination network as well as customer services
thereby offering a strong upside potential to the company in the
We have observed that Archer Daniels is undertaking strategic
steps to manage its business portfolio, which is expected to help
in realizing value from its businesses and investing the same in
best possible resources to enhance returns. This is evident from
the company's recent move of vending its South American fertilizer
business to The Mosaic Company which is expected to increase
returns and help maintain amicable relationship with
Moreover, Archer Daniels has finally hired advisors to ease sale
of the chocolate business and has decided to keep the cocoa press
assets. Archer Daniels has observed that the cocoa press business
is picking momentum due to improvement in crop supplies and
believes that there is immense growth potential in cocoa press,
which is likely to help it in meeting its return objectives.
Archer Daniels Midland is a major global food processing
company. It processes oilseeds, corn, wheat, cocoa and other
foodstuffs. It is also a giant manufacturer of vegetable oil,
protein meal, corn sweeteners, flour, biodiesel, ethanol and other
value-added food and feed ingredients. Moreover, the company has a
worldwide grain elevator and transportation network for
procurement, storage, cleansing and transportation of agricultural
Other Stocks Worth Considering
Archer Daniels currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the agricultural products industry include
Fresh Del Monte Produce Inc.
) which carries a Zacks Rank #1 (Strong Buy) along with
) both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
SYNGENTA AG-ADR (SYT): Free Stock Analysis
ARCHER DANIELS (ADM): Free Stock Analysis
FRESH DEL MONTE (FDP): Free Stock Analysis
ADECOAGRO SA (AGRO): Free Stock Analysis Report
To read this article on Zacks.com click here.