CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to purchase a 50 percent stake in Cairo-based Medsofts Group. The new 50-50 joint venture will own and manage merchandising and supply chain operations, including:
- An international merchandising operation that handles more than 1.5 million metric tons of grains, oilseeds and soft commodities annually destined for the Middle East and North Africa;
- A local grain distribution operation, serving customers in Egypt; and
- An inland logistics network that links port operations to customers throughout Egypt.
In addition, the joint venture will own a 50 percent share of Nile Stevedoring & Storage Co. (NSSC), which operates one of the largest grain port facilities in Egypt. Located at the Port of Alexandria, the facility has an annual discharge capacity of more than 2 million metric tons, and includes additional land for future expansion; the joint venture parties are conducting advanced due diligence on a potential oilseed crush facility on that land.
“This is an excellent addition that helps meet several key goals for strategic expansion in our Agricultural Services business: it further diversifies and expands our merchandising footprint, it helps us grow our logistics services, and it is another important enhancement of our destination marketing capabilities, which are getting us closer to our customers as we deliver products directly to them,” said Joe Taets, president of ADM’s Agricultural Services business unit, and president of the company’s EMEA operations.
“We are continuing to invest in our global supply chain as we execute our plan for profitable growth,” Taets added. “This year alone, in order to continue diversifying our footprint and enhancing our ability to connect supply and demand around the globe, ADM has opened new distribution and merchandising offices in Central America, Asia and Africa; acquired a port and shipping agency in Brazil; announced major expansions at port facilities in Argentina and Brazil; launched ARTCO Stevedoring; and acquired full ownership of strategically-located terminals on the Black Sea. These investments are expanding our reach and capabilities, and delivering value to our customers and our shareholders alike.”
Medsofts is privately held. The transaction is subject to regulatory approval. ADM is targeting closing the deal in early 2016.
Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with more than 33,000 employees serving customers in more than 140 countries. With a global value chain that includes more than 460 crop procurement locations, 300 ingredient manufacturing facilities, 40 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, industrial and energy uses. Learn more at www.adm.com.