Archer-Daniels-Midland (ADM) has signed a definitive agreement with Alltech to establish a North American joint venture in the animal feed sector.
In a filing with the US Securities and Exchange Commission (SEC), ADM said the tie-up would enable it to deconsolidate its complete feed business while retaining its share of specialty ingredient supply to the new entity.
JV structure
The venture will be majority-owned by Alltech and overseen by a board with equal representation from both partners. Alltech will contribute its Hubbard Feeds and Canada-based Masterfeeds operations - comprising 18 US and 15 Canadian feed mills - while ADM will add 11 US complete feed mills.
The transaction is expected to close in the first quarter of 2026, with no material impact projected on ADM’s 2025 financial results, according to the SEC filing.
Streamlining exercise
For ADM, the deal marks a further step in streamlining and simplifying its portfolio. The move reflects its strategy to reposition its animal nutrition operations toward higher-margin, specialty ingredients. It said the arrangement would also free up resources within its nutrition segment to continue investing in R&D to deliver innovative animal nutrition solutions.
The partners highlighted their longstanding ties - ADM was Alltech’s first customer - as well as the potential to combine their complementary strengths in feed production, nutrition science, and manufacturing capacity.
“The venture will be supported and strengthened by the parent companies’ leading-edge technology and R&D, broad logistical capabilities, and connections across the broader ag and feed value chains,” they said in a joint statement.
Retained business
Alltech will retain ownership of Ridley Block Operations, Ridley Feed Ingredients, and its specialty ingredients portfolio, though those businesses will remain partners and suppliers to the new venture. ADM will hold on to its Canadian operations as well as its US premix and additives businesses, which will continue to support the JV.
