Bunge Global SA strikes strategic deal to acquire plant-based ingredients from IFF
The acquisition aligns with Bunge’s strategy to deepen its presence in the food, feed, and biofuel sectors.
USA – Bunge Global SA, a leading agribusiness and food ingredient company, has entered into a purchase agreement with Solae to acquire substantially all the assets related to the lecithin, soy protein concentrate, and crush businesses of International Flavors & Fragrances, Inc. (IFF).
The deal, announced in early August 2025, allows IFF to sharpen its focus on higher-margin, innovation-driven segments like its isolated soy protein business.
The transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions.
The acquisition includes IFF’s commodity-focused operations, which employ approximately 250 workers globally, which generated approximately US$240 million in revenue for IFF in 2024.
While financial terms were not disclosed, the acquisition aligns with Bunge’s strategy to deepen its presence in the food, feed, and biofuel sectors.
Speaking during a conference call with analysts following IFF’s August 6 earnings report, J. Erik Fyrwald, chief executive officer and director, described the soy crush, soy protein concentrate and lecithin products being divested as a “better fit with Bunge.”
For IFF, the divestiture reflects a broader portfolio optimisation strategy. CEO J. Erik Fyrwald described the assets as “commoditised” and better suited to Bunge’s operational model.
“They were low single-digit EBITDA margins for us and were distracting from our very differentiated isolated soy protein business,” emphasised Fyrwald, adding that the sale will allow IFF to focus on innovation and application development in its core food ingredients segment.
The move is part of IFF’s ongoing transformation, which includes shedding non-core or lower-margin operations to sharpen its focus on high-value segments like flavors, fragrances, and health solutions.
Earlier in 2025, IFF also divested its Nitrocellulose business, signalling a consistent effort to streamline operations and enhance shareholder value.
Bunge, which recently completed a US$8.2 billion merger with Viterra on July 2, continues to build on its stronghold in the global agribusiness sector, processing oilseeds such as soybeans, rapeseed, canola, and sunflower into vegetable oils and protein meals.
These products are primarily used in animal feed, cooking oils, margarines, shortenings, plant-based proteins, and the biodiesel industry.
With a strong presence in the world’s top three soybean oilseed-producing countries, Brazil, the United States, and Argentina, Bunge is well-positioned to integrate and optimise the acquired operations.
The acquisition aligns with Bunge’s strategy to strengthen its core agribusiness segment, enhancing its capabilities in processing and supplying soy-based products to meet growing global demand in food, feed, and renewable energy markets.
This strategic deal underscores the shifting dynamics in the global food ingredients market, where companies are increasingly focusing on core competencies, innovation, and sustainable growth.
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