FORT COLLINS — Archer Daniels Midland Co. (NYSE: ADM) has signed an agreement to acquire Fort Collins-based Rodelle Inc., an originator, processor and supplier of vanilla products.
Rodelle, founded in 1936, originates, processes and sells premium vanilla products, including organic and traditional extracts, beans, alcohol-free flavor and paste. The company also sells non-vanilla products, including flavorings, extracts, spice blends and organic spices.
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Rodelle owns a stake in Madagascar-based Federation Sahanala Vanille — a joint venture between Rodelle and a partnership of local associations that now includes more than 2,100 registered vanilla farmers. The joint venture is capable of producing industry-leading volumes of certified organic vanilla. Rodelle also has a strategic partnership with Gourmet Gardens, providing sourcing of vanilla in Uganda. By removing the third parties that are typical in other vanilla processor supply chains, Rodelle is able to offer competitive pricing and a reliable supply.
“With the acquisition of Rodelle, we are continuing to grow our value chain by enhancing what is already one of the most comprehensive portfolios in the flavor industry,” Scott Olstad, president of ADM’s North American WILD Flavors business, said in a prepared statement. “Not only is vanilla one of the most popular and enduring flavors, but Rodelle’s integrated supply chain will allow us to offer an unparalleled range of certified organic and natural vanilla ingredients for today’s health-conscious consumers. The addition of Rodelle will give us immediate capabilities in both the retail and commercial vanilla markets, and we see significant opportunities to expand the business. We’re looking forward to working with the great Rodelle team to help build on their impressive success.”
Rodelle has about 70 full-time employees and operates a 65,000-square-foot extraction and processing facility in Fort Collins that was built in 2008 and expanded in 2014, and includes labs for testing and research and development.
“We are extremely excited to have reached this agreement, and look forward to joining the ADM team and contributing Rodelle’s expertise in vanilla products to another well-established flavoring industry company,” said Joe Basta, Rodelle co-founder. “The Rodelle brand and our loyal customers will benefit greatly from ADM’s technical expertise and commercial capabilities. The core of our business will remain unchanged, and our customers can expect the high-quality vanilla and baking ingredients they have relied on for over 80 years.”
“We see a natural synergy between Rodelle’s vertically integrated supply chain that brings consumers closer to vanilla farmers and ADM’s global reach and technical expertise in the flavor and food ingredient industry,” added Rodelle co-founder Dan Berlin. “In joining forces with ADM, Rodelle will be able to leverage even more value for our customers, employees, farmers and shareholders.”
ADM anticipates completing the transaction, which is subject to regulatory approval, in the third quarter. Terms of the deal were not disclosed.