Archer Daniels Midland Company (ADM) has announced an agreement to acquire a 50 percent equity stake in the sweeteners and starches business of Russia-based Aston Foods and Food Ingredients.

“ADM has substantially added to our global sweeteners and starches capabilities with acquisitions serving the European unio, Middle East and North Africa markets, and now we are expanding to serve the growing Russian food and beverage industry,” says Pierre Duprat, president, ADM Europe, Middle East and Africa. “Aston is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly-owned business grow.”

Under the terms of the agreement, ADM will become 50 percent owner of Aston’s corn wet mills in Ibred and Novlyanka, which are strategically located close to major customers in the Russian food and beverage industry.

“This investment is the latest in a series of important additions and enhancements we have made to grow our global Corn business,” notes Chris Cuddy, president of ADM’s Corn Processing business.

“Last year, we completed our acquisition of Chamtor, opening up access to key markets in Western Europe. In 2015 and 2016, we acquired corn facilities in Hungary, Bulgaria, Turkey and Morocco, then launched a significant expansion effort to enhance our capabilities in those businesses. And we’ve grown significantly in Asia, with our sweetener facility in Tianjin as well as several animal feed plants. Taken together with this expansion into Russia, these global additions represent a substantial transformation of our Corn business as we continue our geographical growth and diversification.”

ADM is targeting a close for the transaction, which is subject to regulatory approval, late in the second quarter of 2018.