Archer Daniels Midland is getting into the flavor business.
The American agribusiness giant is purchasing Wild Flavors, Swiss-German flavoring company, for $3 billion, Reuters reported this morning.
The purchase represents ADM’s first move into the flavoring business. Wild Flavors is the sixth-largest flavoring company in the world. There were reportedly a number of other bidders for Wild Flavors, including firms in Switzerland and Japan. ADM will create a separate business unit after the deal is completed, which is expected to be by the end of the year.
Wild Flavors also holds a separate business that makes the popular juice drink Capri Sun, which is not part of the deal.
This was the second deal in the beverages world in the past week, as Lassonde Industries purchased Apple and Eve for $150 million on July 3.