U.S.-based food processing company Archer Daniels Midland Co.(ADM) has agreed to acquire chemical to oil company Flotek Industries’ consumer and industrial chemistry technologies unit, Florida Chemical Co. LLC.

Archer Daniels Midland will pay $175 million in cash, subject to post-closing working capital and other adjustments, for Florida Chemical. Flotek will retain all of its patents.

Under the terms of the pact, ADM will secure Flotek's long-term supply of d-limonene and Flotek will manufacture differentiated chemistries for Florida Chemical's industrial customers with an opportunities to jointly develop next-generation chemistry technologies.

The deal is expected to close during the first quarter of 2019, subject to customary closing conditions, including obtaining necessary approval related to the Hart-Scott-Rodino Act.