Benzinga | Sep 8, 2021 04:46PM EDT

ADM To Acquire 75% Stake In P4 Companies To Expand Pet Nutrition

* Archer-Daniels-Midland Co (NYSE:ADM) has agreed to acquire a 75% ownership stake in PetDine, Pedigree Ovens, The Pound Bakery, and NutraDine (P4 Companies).

* The transaction values the four enterprises in their entirety at approximately $600 million.

* With more than 300 employees, P4 Companies provides a complete range of customized pet treats and supplement products to more than 650 customers in 15 countries.

* Their offerings include baked treats, semi-moist treats, long goods, blends, unique proteins, soft chews, liquids, and powders.

* ADM will also acquire P4's 300,000+ square feet of state-of-the-art production and innovation facilities in Illinois and Colorado.

* In addition, the agreement includes a call option for ADM to purchase the remaining 25% at an agreed-upon market price in the coming years.

* ADM expects to complete the transaction in the coming weeks.

* ADM held $869 million in cash and equivalents as of June 30, 2021.

* Price Action: ADM shares closed higher by 0.88% at $59.87 on Wednesday.