SWITZERLAND – Bunge, a leading global agribusiness and food company, has entered into a definitive agreement to acquire a 70% ownership interest in IOI Loders Croklaan, a global leader in specialty oils for the food and related industry, from IOI Corporation Berhad for US$946 million.
The transaction, comprising €297 million and $595 million in cash, expands Bunge’s value-added capabilities, reach and scale across the world, establishing Bunge as a global leader in B2B oil solutions for many industries.
“This is a compelling transaction for Bunge. It delivers on our stated objective to expand our value-added business by accelerating our growth in B2B semi-specialty and specialty oils.
“Together with Loders, we will have a comprehensive product offering derived from seed and tropical oils, with leading innovation, application capabilities and sustainability programs.
“This complete seed and tropical oil portfolio will position Bunge to be a full service partner and uniquely able to help our customers innovate and grow for the future, said Soren Schroder, Bunge’s Chief Executive Officer.
Loders, a leader in the growing US$33 billion semi-specialty and specialty B2B oils market, has a wide portfolio of palm and tropical oil-derived products with key strengths in the confectionery, bakery and infant nutrition applications.
It serves global food industry customers in more than 100 countries around the world and reported fiscal year 2016 revenues of US$1.6 billion.
According to Bunge, the transaction combines Bunge’s seed oils with Loders’ high-end specialty and semi-specialty products from tropical oils, including palm, coconut and shea and enables Bunge to provide a comprehensive customer offering customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service segments.
The deal will also diversify Bunge’s manufacturing and R&D network across core geographies, especially in the fast-growing Southeast Asia, quadrupling revenues in that region, and into Europe and North America.
The deal provides Bunge with the right to purchase the remaining interest in Loders from IOI after five years, with IOI having the right to sell its interest to Bunge.