Corbion to sell emulsifiers business to Kingswood Capital Management for US$362M
USA- Corbion, a leading provider of sustainable food solutions, has entered into a binding agreement with Kingswood Capital Management for the sale of its emulsifiers business.
Kingswood Capital Management, a Los Angeles-based middle-market private equity firm with expertise in corporate carve-outs and food and beverage investments, will acquire the emulsifier business for a cash purchase price of US$362 million.
The deal, expected to close in the second quarter of this year, will result in net cash proceeds of approximately US$275 million for Corbion after accounting for taxes and transaction costs.
The divestiture aligns with Corbion’s strategic plan, Advance 2025, announced in 2020, which emphasizes the expansion of core competencies centered around advanced fermentation technologies.
Andy Muller, President of Sustainable Food Solutions at Corbion, expressed pride in the company’s legacy as a pioneer in the emulsifier industry.
He acknowledged the contributions of dedicated employees and loyal customers to this successful chapter in Corbion’s history. The sale of the emulsifiers business will enable Corbion to concentrate on its fermentation-based technologies, aligning with its long-term strategy.
The transaction includes two manufacturing plants in the United States and involves 175 employees. Corbion and Kingswood will collaborate, with supply and service agreements in place, to facilitate a seamless transition.
Kingswood plans to create the largest standalone pure-play emulsifiers business in North America through this acquisition.
Alex Wolf, Managing Partner at Kingswood, expressed excitement about taking forward the world-class emulsifiers business and building on its heritage. He emphasized their commitment to providing best-in-class service and creating value for customers.
Andrew Kovach, Managing Director at Kingswood, highlighted the unique benefits of emulsifier products and their crucial role in meeting evolving global marketplace needs.
Olivier Rigaud, CEO of Corbion, expressed confidence in Kingswood’s stewardship of the emulsifier business, expecting strong support from the new owners.
The strategic move reflects Corbion’s dedication to ensuring a smooth transition for customers and employees, aligning with the company’s ethos of caring about the welfare of stakeholders during corporate divestitures.
For all the latest grains industry news from Africa, the Middle East, and the World, subscribe to our weekly NEWSLETTERS, follow us on LinkedIn, and subscribe to our YouTube channel.
