ADM Expands in EMEA Grains and Oilseeds with Agreement to buy 50% Stake in Medsofts Group
Archer Daniels Midland (ADM) has made a strategic investment that will give the group a stronger presence in the grains and oilseeds supply chain across the EMEA region with the announcement that it has agreed to buy a 50% stake in Cairo-based, privately held, grains and oilseeds handler, Medsofts Group. The deal, which is expected to close in early 2016 will be subject to regulatory approvals.
The newly formed 50/50 joint venture will own and operate grain and oilseed supply chain operations that will include facilities that handle more than 1.5 million tons of grains, oilseeds, and soft commodities per year bound for Middle Eastern and North African markets, a local Egyptian grain distribution network, and an inland logistics network that connects ports to customers throughout Egypt.
The joint venture will also own a 50% stake in Nile Stevedoring & Storage Co. (NSSC) which controls one of the largest grain port facilities in the country located at the Port of Alexandria. The site has a handling capacity of more than 2 million tons and has additional land for further expansion. Both parties involved in the joint venture are currently conducting due diligence for the future building of a potential oilseed crushing facility at the site.
“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 in a company press release announcing the deal.
Indeed, ADM has been exceedingly active this year investing in its global supply chain in pursuit of growth. The company 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, said Mr. Taets. “These investments are expanding our reach and capabilities, and delivering value to our customers and our shareholders alike.”