The deal is “the next step” for ADM.
Archer Daniels Midland Co. (NYSE: ADM) announced that it is acquiring Crosswind Industries Inc., a Kansas-based producer of dry-expanded, dual-texture, semi-dry and semi-moist treat products for pets.
Financial terms of the deal were not disclosed. ADM anticipates closing the transaction in the coming weeks.
“The global pet food industry represents a strong opportunity for strategic growth, especially for a company with the global resources of ADM,” said Brent Fenton, president of ADM’s Animal Nutrition business. “ADM already sells more than 50 ingredients and commodities that are used by more than 70 percent of all pet food companies in North America. Now, we’re taking the next step with the addition of Crosswind Industries to our global network.”
Fenton continued: “With five production facilities and a wide range of successful products, Crosswind represents a strong opportunity to expand our capabilities, and a great fit not just with the Animal Nutrition business, but across ADM’s wider portfolio of ingredients, colors and flavors for pets.”
Crosswind Industries is described in a press release as a leader in the manufacture of contract and private label pet treats and foods, as well as specialty ingredients. Its 300 employees operate five processing lines across five Kansas facilities, with nine “ready for retail” packaging lines.
“Since early 2015, we have announced or completed several organic growth and improvement projects for our Animal Nutrition business across the U.S., as well as overseas,” Fenton said. “We’ve also been active on the M&A front, with the acquisition of Lyrco Nutrition and the creation of our Alliance Liquid Feeds joint venture. Now, with the addition of Crosswinds, we are continuing our efforts to grow our business so as to set the industry standard and ensure that we are continuing to meet growing customer needs for quality animal nutrition products.”
ADM is one of the world’s largest agricultural processors and food ingredient providers, with more than 32,300 employees serving customers in more than 160 countries.