By Katherine Dunn
Commodities giant Archer Daniel Midland Monday said it has
completed the sale of its chocolate business to Cargill for $440
million, wrapping up a deal that was first announced in September
2014.
ADM said the $440 million price tag was subject to adjustments
after sale, and would result in 670 employees being transferred to
Cargill.
The move is part of ADM's decision to exit the chocolate
business, which is especially volatile amongst agricultural
commodities, with production overwhelmingly concentrated in just
two countries in West Africa, and subject to weather and political
worries.
In December, ADM sold its global cocoa business in a separate
deal to Singapore-based Olam International Ltd., one of the world's
largest cocoa processors, for $1.3 billion.
On Monday, ADM Chief Executive Officer Juan Luciano said the
sale of its cocoa and chocolate businesses should help improve the
firm's broader profitability.
Cargill has said it will take over six factories that produce
chocolate products following the deal, split evenly between North
America and Europe. The European Commission has told Cargill it
must sell its own competing chocolate production facility in
Germany.
Write to Katherine Dunn at katherine.dunn@wsj.com