9 September 2021 - ADM has said it has agreed to buy a 75% stake in PetDine, Pedigree Ovens, The Pound Bakery and NutraDine, providers of private label pet treats and supplements (P4 Companies). The deal values the four businesses at about $600 million.
ADM will also acquire the companies' production and innovation facilities in Illinois and Colorado. P4 employs 300 staff.
The deal also includes a put/call option under which the parties could agree for ADM to purchase the remaining 25% at an agreed-upon market price in the coming years.
“We’re continuing to advance our growth strategy and transform our company with targeted investments that expand our capabilities in large, high-growth segments, including pet nutrition – a key focus of our growing animal nutrition business,” said Vince Macciocchi, president of ADM’s Nutrition business. “Annual global sales of pet food total $110 billion, forecast to grow to $140 billion by 2026 – with pet treats an even faster-growing category. We’ve grown to meet that demand, from the construction of new production facilities, to the additions of pet treat and food provider Crosswind and Neovia’s global pet nutrition business, to the opening of our industry-leading Animal Nutrition Technology Center in Decatur. Now, we’re taking the next step in our strategic journey with a majority investment in P4."