Louis Dreyfus Company Acquires BASF’s Health Ingredients
In a significant move, BASF has announced its decision to sell its Food and Health Performance Ingredients division to Louis Dreyfus Company (LDC). This deal, revealed on December 23, 2024, encompasses a state-of-the-art production facility and an advanced research and development center located in Germany. As part of the acquisition, LDC will gain access to a wide array of health ingredients, including plant sterol esters, conjugated linoleic acid (CLA), and omega-3 oils used in human nutrition. The transaction also includes various food performance components like aeration agents, whipping agents, emulsifiers, and different types of fat powder.
BASF’s Shift in Strategic Focus
While BASF has not disclosed the financial terms of the agreement, it is set to transfer three application laboratories situated outside Germany as part of the deal, as indicated in recent press releases.
For LDC, this acquisition represents a vital opportunity to strengthen its position in the growing market for plant-based ingredients. The company’s CEO articulated excitement about this acquisition, noting that it marks LDC’s first venture into dedicated facilities for the large-scale production of food and health performance ingredients.
BASF has been active in the human nutrition sector over the years, making several high-profile acquisitions since 2010. This journey began with the notable €3 billion acquisition of Cognis, followed by the purchases of Equatec—a Scottish maker of omega-3 concentrates in 2012—and Norwegian omega-3 company Pronovo in 2013. However, BASF has concluded that the food and nutritional ingredients segment no longer fits within its strategic vision, revealing limited synergies for integration with its core business operations.
Future Prospects for LDC
By divesting this segment, BASF aims to streamline its focus on the Fertilizers and Healthcare sectors, home to its main product lines in vitamins, carotenoids, and feed enzymes. A member of BASF’s Board of Executive Directors highlighted the commitment to refining these core product platforms.
Once the agreement is finalized, around 300 employees will transition from BASF to LDC, pending standard closing conditions which include regulatory approvals.
The head of LDC’s Food & Feed Solutions division underscored the compatibility of the newly acquired BASF business with LDC’s existing portfolio. The integration holds tremendous potential for LDC, paving the way for the company’s evolution from a reliable supplier of raw materials to a trusted collaborator in crafting innovative solutions across baking, non-dairy products, instant foods, personal care, and healthcare applications.
Source: Nutraingredients