For all the companies involved, this deal is primarily about serving the oil and gas industry.
As John Chisholm, chairman, president, and CEO of Flotek tells the press in a release about the sale of Florida Chemical Company to ADM, “This transaction unlocks significant value for our stakeholders, while maintaining our access to key raw materials for our Energy Chemistry Technologies ("ECT") business. The transaction also enhances our flexibility to evaluate and pursue the long-term strategy for our core ECT business. Additionally, we are very excited about our long-term relationship with ADM to develop unique opportunities to more fully leverage their vast, high-performing portfolio of products to better serve the oil and gas market for many years to come.”
Personal care and fragrance
ADM’s main businesses are food ingredients, supplements, animal nutrition, fuel, and the like. But the company does deal in chemical inputs and ingredients for packaging and personal care as well.
Florida Chemical Company has been operating since 1942 and is known for its citrus ingredients and essential oils as well as for market-ready blended fragrances.
Describing the advantages to Florida Chemical’s soon-to-be new owner, Chisholm tells the press, “ADM is a world-class leader in transforming crops into agricultural and food products. Recognized for its industry-leading capabilities and assets, Florida Chemical will be a significant strategic addition to ADM as they further expand their industry-leading flavor and fragrance offerings.”
The deal is expected to close in Q1 of this year, pending customary approvals.
Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.