Microbiome strategy: ADM to acquire Probiotics International in US$243m deal
02 Jul 2018 --- Archer Daniels Midland (ADM) expands its reach in the probiotic market with the US$243 million (£185 million) acquisition of UK-based manufacturer Probiotics International Ltd (PIL).
“ADM is already one of the world’s largest providers of human and animal nutrition solutions and the acquisition of PIL will add to our extensive portfolio of products that promote health and wellness,” says Vikram Luthar, President of ADM Health & Wellness.
This acquisition step follows a trail of purchases by ADM in a bid to increase its standing in the microbiome solutions space: “We took a major step in this area last year with the addition of Biopolis and then added to our capabilities with our personalized nutrition collaboration with Mayo Clinic, our joint development agreement with Vland Biotech, and our new enzyme lab in California. Now, with the addition of PIL’s extensive sales and marketing network to our existing R&D capabilities, we are building a world-class, fully integrated probiotics and nutraceuticals business,” he adds.
Speaking on the Mayo Clinic collaboration announced in late 2017, Luthar told NutritionInsight at the time, “A major part of how ADM will make the collaboration with the Mayo Clinic work is by bringing to bear the investments we are already making in this space, particularly the technology and expertise we added earlier this year when we acquired a 90 percent ownership stake in Biopolis, a leading provider of microbial and sequencing technology with a strong portfolio of novel food ingredients.”
PIL – also known under its umbrella brand Protexin – is a “leading” provider of probiotic supplements for human wellness and animal markets, including aquaculture, equine, livestock and companion animals. With sales in more than 60 countries, PIL produces the Bio-Kult brand of probiotic supplements along with contract-manufactured products.
“A key part of that integrated Nutrition platform is our Health & Wellness business, which includes bioactives, botanical extracts and specialty nutritional oils, including innovative products such as our Onavita algal DHA oil, and Novatol Vitamin E 1490PH. The addition of PIL is just one of the many important investments we are making to grow our entire integrated Nutrition business. From the growth of our bioactives platform, to new Animal Nutrition facilities in North America and China, to our expanding network of food and beverage ingredient innovation centers, we are enhancing our presence in a growing market and ensuring that we are the go-to provider for complete health and wellness and ingredients solutions for human and animal nutrition customers alike,” says Vince Macciocchi, President of ADM’s Nutrition business unit.
NutritionInsight has previously reported on PIL’s Bio-Kult hitting headlines for its positive clinical performance in symptom reduction for those suffering from Irritable Bowel Syndrome – diarrhea (IBS-D) and its potential to reduce anxiety, actively tapping into the gut-brain axis market.
