Archer Daniels Midland Company announced that it has reached an agreement to purchase a 50 percent stake in Cairo-based Medsofts Group. The new 50-50 joint venture will own and manage an international merchandising operation a local grain distribution operation, serving customers in Egypt and an inland logistics network.
The leading agricultural processor and food ingredients company Archer Daniels Midland (ADM) announced that it has reached an agreement to purchase a 50 percent stake in Cairo-based Medsofts Group. ADM is targeting closing the deal in early 2016. The new 50-50 joint venture will own and manage merchandising and supply chain operations, including: an international merchandising operation that handles more than 1.5 million metric tons of grains, oilseeds and soft commodities annually destined for the Middle East and North Africa; a local grain distribution operation, serving customers in Egypt; and an inland logistics network that links port operations to customers throughout Egypt.
In addition, the joint venture will own a 50 percent share of Nile Stevedoring & Storage Co. (NSSC), which operates one of the largest grain port facilities in Egypt. Located at the Port of Alexandria, the facility has an annual discharge capacity of more than 2 million metric tons, and includes additional land for future expansion; the joint venture parties are conducting advanced due diligence on a potential oilseed crush facility on that land.
“This is an excellent addition that helps meet several key goals for strategic expansion in our Agricultural Services business: it further diversifies and expands our merchandising footprint, it helps us grow our logistics services, and it is another important enhancement of our destination marketing capabilities, which are getting us closer to our customers as we deliver products directly to them,” said Joe Taets, president of ADM’s Agricultural Services business unit, and president of the company’s EMEA operations.