CHICAGO — Archer Daniels Midland Co. has reached an agreement to acquire a 50% stake in Cairo, Egypt-based Medsofts Group. 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 tonnes of grains, oilseeds and soft commodities annually destined for the Middle East and North Africa.
Additionally, the new joint venture will serve as a local grain distribution operation, serving customers in Egypt, as well as an inland logistics network that links port operations to customers throughout Egypt.
The joint venture will own a 50% share of Nile Stevedoring & Storage Co., 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 tonnes and includes additional land for future expansion. ADM and Medsofts Group said they 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. “We are continuing to invest in our global supply chain as we execute our plan for profitable growth. This year alone, in order to continue diversifying our footprint and enhancing our ability to connect supply and demand around the globe, ADM has opened new distribution and merchandising offices in Central America, Asia and Africa; acquired a port and shipping agency in Brazil; announced major expansions at port facilities in Argentina and Brazil; launched ARTCO Stevedoring; and acquired full ownership of strategically-located terminals on the Black Sea. These investments are expanding our reach and capabilities and delivering value to our customers and our shareholders alike.”Founded in 2001, privately-held Medsofts is one of the key agricultural commodity (in particular corn, wheat, soybeans) importers and supply chain managers in Egypt.