Louis Dreyfus acquires BASF’s Food and Health Ingredients business

NETHERLANDS – Louis Dreyfus Company (LDC), a prominent player in the global agriculture and food ingredients market, has signed a binding agreement to acquire BASF’s food and health ingredients business. 

LDC’s acquisition includes a production site and state-of-the-art R&D center in Illertissen, Germany, and three application labs outside of Germany.

The Netherlands-based company believes the acquisition will enhance its capabilities in developing applications for various industries.

The financial details of the transaction were not disclosed.

In a statement, James Zhou, LDC’s Chief Commercial Officer, emphasized the potential of the acquisition to transform the company’s role in the food ingredients market.

This step strengthens our ability to provide solutions for bakery, confectionery, non-dairy, instant foods, personal care, and healthcare products. It represents a step toward evolving from a raw material supplier to a trusted partner for our customers globally,” Zhou said.

The move suits LDC’s strategy to expand its presence in the plant-based sector, while BASF shifts its focus to other priorities.

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.

BASF, a Germany-based chemical company, cited a lack of strategic fit as the reason for the divestment. 

The German-based company earlier indicated that the food and health performance ingredients business offered limited operational synergies with its other businesses.

Instead, BASF plans to focus on growth in core areas such as vitamins, carotenoids, and feed enzymes.

This decision allows us to direct resources toward areas that align with our strategic goals,” said Michael Heinz, a member of BASF’s executive board.

BASF’s decision to exit the sector reflects these broader industry trends and may improve its financial position.

The agreement is subject to regulatory approvals and customary closing conditions.

LDC has been actively expanding its footprint in protein ingredients. 

In mid-2023, the Netherlands-based company launched a business unit dedicated to pulses like lentils and beans. 

Earlier this year, LDC revealed plans to construct a pea protein processing facility in Canada, signaling its commitment to plant-based innovation.

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