The story
Founded by George A. Archer in 1902, in Minneapolis.1
Early history
In 1902, John W. Daniels started a linseed crushing business in Minneapolis, Minnesota.
George A. Archer joined the operation the next year, and in 1905 the firm's name officially became the Archer-Daniels Linseed Company. In 1923, Archer-Daniels Linseed Company acquired Midland Linseed Products Company and then incorporated as the Archer Daniels Midland Company. The new corporation had total assets exceeding $11 million and controlled just over a third (35%) of the total linseed mill capacity within the United States.
In 1924, ADM was listed on the New York Stock Exchange. A series of acquisitions over the next several years expanded the company's oil processing capabilities and agricultural operations, and a grain division was established in 1927. In 1930, ADM purchased control of the flour milling company Commander-Larabee Corp., which was capable of producing 32,000 barrels of flour per day. In 1934 the company began operating its first continuous solvent extraction plant in Chicago, Illinois and could now produce soybean oil. The rapid development of similar extraction plants soon followed.
By 1952, Archer Daniel Midland's workforce had expanded to 5,000 employees, and by 1952 the company was operating overseas and manufacturing over 700 products.
In 1962, the company began using the initials "ADM" for marketing purposes, and filed a trademark for that acronym. In 1965, ADM registered the original patent for textured vegetable protein and began producing the soy flour product at its Decatur East Plant by 1966.
In 1966, Dwayne Andreas and his brother Lowell Andreas became minority shareholders in ADM. In 1969, ADM relocated its headquarters from Minneapolis to Decatur, Illinois, a location closer to the company's soybean processing operations. At this time, it was already considered one of the world's largest agribusiness company, with a labor force of more than 24,000 employees.
Dwayne Andreas period (1970–1997)
Dwayne Andreas was named CEO of ADM in 1970, and two years later was elected chairman of the company's board. Under his leadership, Archer Daniels Midland acquired many smaller agricultural companies and expanded into international markets, eventually becoming one of the world's largest agricultural processing companies. During this period, the company's soybean exports increased from $1.5 billion to $7 billion.
In 1974, ADM made its first expansion into Europe and South America when the company acquired soybean plants in Holland and Brazil.
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In 1982, ADM established international grain operations when it purchased a portion of Toepfer International, a Germany-based grain trading firm.
In 1989, ADM purchased Collingwood Grain Inc. based in Hutchinson Kansas, adding 48 million bushels of grain storage at 36 terminal elevators.
Dwayne Andreas stepped down from his position as CEO in 1997 and was succeeded by his nephew G. Allen Andreas. The transition occurred a year after the company pleaded guilty to price-fixing.
2001–present
In 2001, Paul B. Mulhollem became the company's president. In December 2001, ADM completed the first U.S. commercial sale to Cuba since the embargo was imposed in October 1960. The next year
ADM sponsored a major agribusiness show in Havana, where the company signed a $10 million contract with Cuba’s food import agency, Alimport, to deliver rice, cooking oil, and soy.
In March 2006, G. Allen Andreas announced he was stepping down as CEO. Later, in May 2006, Patricia A. Woertz became the company's chief executive officer. In February 2007, Woertz was elected chairman of the board at ADM.
In 2012, the company sought to acquire strategic holdings to support serving Asian markets through the acquisition of GrainCorp, an Australian grain firm with a network of storage and port facilities in Australia. On November 28, 2013, the acquisition was blocked by the Australian Treasurer Joe Hockey after Australia's Foreign Investment Review Board failed to reach a consensus recommendation.
The company moved its headquarters to Chicago in 2014.
That same year, ADM completed its acquisition of Toepfer International, Germany's largest grain trader, and renamed the company ADM Germany GmbH. The company also announced that it would buy Swiss-German natural ingredient company Wild Flavors for $3 billion, a move aimed at expanding ADM into health-oriented food sectors.
ADM announced the appointment of current CEO Juan R. Luciano on November 5, 2014. Luciano initially joined the company in 2011 as chief operating officer. Under Luciano's leadership, the company restructured its business segments and pursued an aggressive strategy of acquisitions that expanded its human and animal nutrition business.
In October 2015, ADM announced the sale of its global cocoa business to Olam International. The sale was valued at about $1.2 billion. Approximately 1,500 employees transferred to Olam with the sale. In January 2017, ADM agreed to sell its crop risk services (insurance) unit to Validus Holdings for $127.5 million.
In October 2016, ADM launched its venture capital arm, ADM Ventures, which focused initially on alternative proteins.
The Wall Street Journal reported in January 2018 that ADM had approached Bunge Ltd. about a takeover, with details "unclear" at the time. At that point, Bunge had a market value of about $9.8 billion, and was also being pursued by Glencore PLC for acquisition, since May 2017. In January 2019, Juan Luciano clarified the company didn't need a "monster transformational transaction" and a deal was never made.
In March 2018, ADM restructured its business segments into four units: carbohydrate solutions, nutrition, oilseeds, and origination or ag services. The next year, the company announced it was consolidating the ag services and oilseed units.
In September 2021, ADM acquired a 75% stake in four pet food companies for a total of $450 million, including PetDine, Pedigree Ovens, NutraDine, and The Pound Bakery. Later that year in November, ADM acquired Serbian soy agribusiness Sojaprotein, and completed its acquisition of Deerland Probiotics & Enzymes.
In 2022, ADM saw rising profits due to the Russian invasion of Ukraine and the global food crisis.
From Wikipedia’s article on Archer Daniels Midland, shared under CC BY-SA 4.0.8