The animal nutrition business of Archer Daniels Midland (ADM) is set to expand after the company signed an agreement to acquire Kansas-based manufacturer of pet food and treat products Crosswind Industries, the Chicago headquartered company announced Wednesday.
“The global pet food industry represents a strong opportunity for strategic growth, especially for a company with the global resources of ADM,” a statement by the president of ADM’s animal nutrition unit, Brent Fenton, said. “ADM already sells more than 50 ingredients and commodities that are now used by more than 70% of all pet food companies in North America.”
Crosswinds’ five production facilities and product offerings will help ADM expand its efforts in Animal Nutrition and compliments the company’s existing ingredients, colors, and flavors for pets, according to Fenton.
“We are looking forward to combining Crosswind’s operations and products with our own to provide customers an even broader array of products and services,” said Fenton.
Crosswind Industries employs 300 workers, and the company operates five processing lines at five Kansas facilities, and nine “ready for retail” packaging lines. The company is a leading manufacturer of contract and private label pet treats and foods, including specialty ingredients, ADM said.
“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,” said Fenton. “We’ve also been active o the M&A front, with the acquisition of Lycro 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 consumer needs for quality animal nutrition products.”
ADM said the deal is anticipated to close in the next few weeks.