ADM expands presence in Poland with acquisition of Elstar Oils

Photo: Archer Daniels Midland Co.

December 19, 2011

BY Bryan Sims

Decatur, Ill.-based agribusiness giant Archer Daniels Midland Co. bolstered its oilseed processing, food manufacturing and biodiesel capabilities in Poland by completing its acquisition of Polish agribusiness firm Elstar Oils S.A.

The completed acquisition follows ADM’s originally-stated intent to purchase a majority share in Elstar on Aug. 13. The Polish Office of Competition and Consumer Protection approved ADM Nederland B.V. to purchase the remaining 2.26 percent of Elstar Oils, giving ADM 100 percent operational control of the company. Antitrust authorities in Austria, Germany, the Slovak Republic and Ukraine also approved the sale. ADM said in a statement it plans to delist Elstar from the Warsaw Stock Exchange as a result of its acquisition.

Elstar, located in northern Poland, operates a rapeseed crushing, refining, solid-fat packaging and oil bottling facility in Czernin. The company’s subsidiary, Biopaliwa S.A, operates fully-automated biodiesel plant in Malbork. In 2008, the Elstar Group completed the last stage of a four-year long investment process that resulted in an increase of its rapeseed crush capacity from 200,000 to 400,000 tons annually.

“Achieving operational control of Elstar Oils is an important step in ADM’s strategy to acquire and consolidate existing oilseed processing, food manufacturing and biodiesel capabilities in this growing origination and consumer market,” said Brent Fenton, president of ADM Europe. “Elstar’s facilities are ideally located to complement and expand our ownership in the Eastern Europe region.”

Advertisement

ADM’s operations in Poland include an oilseeds crushing and refining facility in Szamotuly that refines and bottles retail vegetable oils; country elevators in Slawa Wielkopolska and Chroscin; an import and export terminal owned as part of a joint venture in the port of Gdynia where a new grain warehouse to expand capacity is planned and a joint venture with Princes to expand the distribution of bottled vegetable oils.

 

Advertisement

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement