ADM sells Crop Risk Services to Validus

CHICAGO - Archer Daniels Midland Co. said it sold its Crop Risk Services business to Validus Holdings for approximately $127.5 million.

The deal includes a marketing services agreement in which ADM and Validus will work together to continue to offer a full range of insurance and farmer marketing products and services to CRS customers.

Validus, a global provider of insurance, reinsurance and investment services, with over 800 employees and offices in all major regions worldwide, will keep CRS intact, including maintaining its operations in Decatur.

CRS was first established in 1982 as ASI AgriServe Inc. In 2010, ADM acquired 100 percent of the shares of ASI, and the company became ADM Crop Risk Services.

"We regularly evaluate our portfolio to ensure that our businesses and assets best fit our strategy to maximize long-term returns," said Joe Taets, president of ADM's Agricultural Services business unit. "As a result of that ongoing process, we have identified a better strategic fit for the Crop Risk Services business. In the years since we purchased ADM CRS, that team has built it out to become a significant market participant."

Validus' Chairman and CEO Ed Noonan said the acquisition complements Validus' "existing agriculture book and participation in this market is a logical step as Validus continues to expand our presence in U.S. primary specialty lines.

"CRS is a high quality crop insurance provider that has achieved excellent growth in recent years," Noonan said. "We are excited by the long-term partnership with ADM as this transaction further provides the unique opportunity of a marketing services agreement with one of the largest agricultural processors in the world."