Agricultural products giant Archer Daniels Midland Co. (NYSE: ADM) announced Monday morning that it will acquire Switzerland-based WILD Flavors for about $3 billion in cash and about $136 million in debt. The transaction is expected to close by the end of the year, pending regulatory approvals.

WILD Flavors is 35%-owned by funds affiliated with Kohlberg Kravis Roberts & Co. (NYSE: KKR) and is the maker of Capri Sun juice drinks, among other juice concentrates, blends, natural flavors and other food flavoring products. According to ADM’s CEO, natural flavor and ingredients are among the fastest-growing trends in all markets and WILD Flavors is the world’s leading provider. CEO Patricia Woertz also said:

The addition of WILD Flavors balances and extends our value chain. It is consistent with our long-term strategy to diversify the crops we process and expand and diversify our product portfolio. It complements the ingredient, organic-growth investments we’ve recently made — including our Brazil protein complex and soluble-fiber expansion in China. And it is consistent with actions we’ve taken to dampen the volatility of our earnings mix and deliver on our commitment to profitable growth. The acquisition will meet our return objectives, with estimated cost and revenue synergies of €100 million by year three.

WILD Flavors claims more than 3,000 customers and is expected to post 2014 revenues of around €1 billion in 2014.

Acquiring an offshore company based in a tax haven like Switzerland immediately causes the more cynical among us to wonder if ADM is looking at taking advantage of a U.S. law that would allow the company to re-domicile offshore, a so-called inversion. ADM has said nothing about doing so, but the company’s revenues have been stagnant and first-quarter profits missed estimates by 25%. Cutting its tax bill would certainly help ADM’s bottom line.

ADM’s stock was inactive in Monday’s premarket, having closed at $45.77 last Thursday after posting a new 52-week high of $45.95. The stock’s 52-week low is $34.21 and the consensus target price on the stock is around $47.10.

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