Bunge Ltd., a leading global agribusiness and food company, announced that it has entered into a definitive agreement to acquire a 70% ownership interest in IOI Loders Croklaan for $946 million, comprising €297 million and $595 million in cash. The transaction expands Bunge’s value-added capabilities, reach and scale across core geographies to establish Bunge as a global leader in business-to-business (B2B) oil solutions.
Loders is an established leader in the growing $33 billion semi-specialty and specialty B2B oils market. Its portfolio includes the full range of palm and tropical oil-derived products with applications in confectionery, bakery, and infant nutrition applications. Loders serves global food industry customers in more than 100 countries around the world and reported fiscal year 2016 revenues of $1.6 billion.
The transaction combines Bunge’s vertically integrated upstream capabilities and existing oils portfolio, predominately based on seed oils, with Loders’ high-end specialty and semi-specialty products from tropical oils, including palm, coconut, and shea. It enables Bunge to provide a comprehensive customer offering, from core products to specialties, for B2B customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service segments.
In addition to strengthening Bunge’s Food & Ingredients business with a broader portfolio of value-added products, the transaction diversifies Bunge’s manufacturing and R&D network across core geographies. This includes establishing a stronger presence in fast-growing Southeast Asia. Bunge’s Food & Ingredients revenues in that region will be four times as large as they are currently. Bunge will also have an enhanced footprint in Europe and North America. After closing, Loders will have exposure to new markets where Bunge has a strong presence, including Latin America and India.
Source: IFT
