ADM Acquires Majority Stake in Israeli Grain Distributor

Chicago-based Archer Daniels Midland (ADM) ironed out an agreement to purchase a majority interest in Israeli grain importation and distribution firm Industries Centers, offering the American agribusiness greater access to Israel’s market, the global food processing and commodities trading company announced Monday.

“With this investment, we are continuing to expand and enhance our core value chain, including our ability to deliver direct to the customer,” said Joe Taets, president of ADM Agricultural Services, in a statement. “Industries Centers offers an entry point into a strong, established Israeli market. We have worked with them in the past to help us import our own products into Israel, and we know them as an experienced, capable partner.”

A privately-owned trader of corn byproducts and other byproducts, Industries Centers was founded in 1993 and has an office near Tel Aviv and a 45,000 MT storage facility at the Port of Ashdod.

“This is a great opportunity for us to reach new customers with a wide array of products, from soybean meal to grains to feed ingredients,” said Taets. “It also represents a further expansion of our destination marketing capabilities, which remain a strategic priority as we work to enhance shareholder returns by expending our value chain to the end customer.”

ADM expects the transaction to be completed within the coming months pending regulatory approval by Israeli officials.

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