Louis Dreyfus Company, merchant and processor of agricultural goods, has signed a binding agreement for the acquisition of BASF’s food and health performance ingredients business, including a production site and R&D center in Illertissen, Germany, and three application labs outside of Germany.
“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,” said Michael Gelchie, LDC’s chief executive officer in a statement last month. “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.”
“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,” said Michael Heinz, member of the board of executive directors of BASF and responsible for the Nutrition & Health division.
“The divestment of this business to LDC supports our strategic portfolio optimization and will allow us to focus on our 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.”
BASF’s food and health performance ingredients business produces plant-based food performance ingredients and emulsifiers, as well as health ingredients, and commercializes these globally. Through the proposed acquisition, LDC aims to leverage its existing strengths in oils and fats, glycerin and lecithin, as well as its global supply chains, to reinforce its global position in nutritional and functional ingredients.
“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, we see strong potential to accelerate LDC’s evolution from reliable raw material provider to trusted solutions advisor as well, partnering our global customers to develop attractive applications for bakery & confectionary, non-dairy, instant foods, personal care and healthcare,” said James Zhou, LDC’s chief commercial officer and head of food & feed Solutions.
The agreement is subject to regulatory approvals and customary closing conditions.
Louis Dreyfus’ activities span the entire value chain, from farm to fork, across a broad range of business lines (platforms) – carbon solutions, coffee, cotton, food & feed solutions, freight, global markets, grains & oilseeds, juice, rice and sugar.
IndiFoodBev — authentic, impactful and influential
An English-language food and beverage processing and packaging industry B2B platform in print and web, IndiFoodBev is in its third year of publication. It is said that the Indian food and beverage industries represent approximately US$ 900 billion in revenues which implies more than 20% of the country’s GDP. Eliminating the wastage on the farmside can help to deliver more protein to a higher number of the population apart from generating sizable exports. The savings in soil, seeds, water, fertilizer, energy and ultimately food and nutrition could be the most immense contribution that country is poised to make to the moderation of climate change.
To improve your marketing and grow sales to the food and beverage processing and packaging industry, talk to us. Our research and consulting company IppStar [www.ippstar.org] can assess your potential and addressable markets in light of the competition. We can discuss marketing, communication, and sales strategies for market entry and growth.
Suppliers and service providers with a strategy and budget for targeted marketing can discuss using our hybrid print, web, video, and social media channels to create brand recognition linked to market relevance. Our technical writers are ready to meet you and your customers for content.
The second largest producer of fruit and vegetables in the world is continuously expanding processing capacities and delivery systems with appropriate innovative technologies. We cover product and consumer trends, nutrition, processing, research, equipment and packaging from farm to thali. Get our 2025 media kit and recalibrate your role in this dynamic market. Enhance your visibility and relevance to existing markets and turn potential customers into conversations. Ask for a sample copy of our bi-monthly in print or our weekly IndiFoodBev eZine each Wednesday.
For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in
Naresh Khanna – 10 February 2025
Subscribe Now
