NETHERLANDS – Louis Dreyfus Company (LDC), a leading global merchant and processor of agricultural goods, has announced a binding agreement to acquire BASF’s Food and Health Performance Ingredients business.
This strategic acquisition includes a production site and state-of-the-art R&D center in Illertissen, Germany, along with three application labs located outside of Germany.
Michael Gelchie, LDC’s Chief Executive Officer, emphasized the alignment of this acquisition with the company’s strategic goals:
“In line with our strategic plans for revenue diversification through more value-added products and growth in downstream markets, this agreement is an opportunity to accelerate LDC’s participation in the rapidly growing plant-based ingredients market.”
He added, “We are excited about the prospect of this transaction, as LDC’s first investment in dedicated facilities to produce food and health performance ingredients at scale.”
BASF’s Food and Health Performance Ingredients business specializes in producing plant-based food performance ingredients and emulsifiers, as well as health ingredients, which are commercialized globally. The portfolio includes products such as aeration and whipping agents, food emulsifiers, fat powder grades, plant sterol esters, conjugated linoleic acid (CLA), and omega-3 oils for human nutrition.
Michael Heinz, Member of the Board of Executive Directors of BASF and responsible for the Nutrition & Health division, stated, “Building on our teams’ success to develop this business very well over the last years, LDC as a future-oriented company can offer our employees and portfolio a promising perspective.”
He further noted that the divestment of this business to LDC supports its strategic portfolio optimization and will allow LDC to focus on its core businesses in Nutrition & Health.
“We remain committed to leveraging our core product platforms and expanding our business in key areas such as vitamins, carotenoids, and feed enzymes.”
James Zhou, LDC’s Chief Commercial Officer and Head of Food & Feed Solutions, commented, “BASF’s Food and Health Performance ingredients business is highly complementary to LDC’s existing Food & Feed Solutions Platform portfolio, and with the integration of these activities.”
According to James, LDC foresees strong potential to accelerate its evolution from reliable raw material provider to trusted solutions advisor as well, partnering with global customers to develop attractive applications for bakery & confectionery, non-dairy, instant foods, personal care, and healthcare.
The transaction is subject to customary closing conditions, including approval from relevant regulatory bodies. As part of the agreement, approximately 300 employees are expected to transfer from BASF to LDC upon closing.
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