Acquisitions

6 Months Ended

Jun. 30, 2024

During the six months ended June 30, 2024, the Company acquired Revela Foods (“Revela”), a Wisconsin-based developer and manufacturer of innovative dairy flavor ingredients and solutions, FDL, a UK-based leading developer and producer of premium flavor and functional ingredient systems, PT Trouw Nutrition Indonesia (“PT”), a subsidiary of Nutreco and leading provider of functional and nutritional solutions for livestock farming in Indonesia, and Totally Natural Solutions (“TNS”), a UK-based hops flavoring producer, for an aggregate cash consideration of $948 million.

The aggregate cash consideration of these acquisitions, net of $12 million in cash acquired, was allocated as follows, subject to final measurement period adjustments:


(In millions)	Revela		FDL		PT		TNS		Total
Working capital	$	50	$	16	$	5	$	2	$	73
Property, plant, and equipment	38		34		5		2		79
Goodwill	410		128		5		8		551
Other intangible assets	166		97		—		11		274
Other long-term assets	28		1		—		—		29
Long-term liabilities	(43)		(26)		—		(1)		(70)
Aggregate cash consideration	$	649	$	250	$	15	$	22	$	936

Goodwill recorded in connection with the acquisitions is primarily attributable to the synergies expected to arise after the Company’s acquisition of the businesses. Of the $551 million allocated to goodwill, $313 million is expected to be deductible for tax purposes.

These acquisitions add capabilities to the Human and Animal Nutrition businesses. The Company’s consolidated statement of earnings for the three and six months ended June 30, 2024 includes the post-acquisition results of the acquired businesses which were immaterial.

The following table sets forth the fair values and the useful lives of the other intangible assets acquired.


	Useful Lives			Revela		FDL		TNS		Total
	(In years)			(In millions)



Intangible assets with finite lives:
Trademarks/brands	3			$	—	$	4	$	1	$	5
Customer lists	10	to	18	124		73		8		205
Recipes and others	10	to	21	42		20		2		64
Total other intangible assets acquired				$	166	$	97	$	11	$	274