Oils expansion: Bunge completes acquisition of 70 percent stake in IOI Loders Croklaan
02 Mar 2018 --- Bunge Limited has completed its acquisition of a 70 percent ownership interest in IOI Loders Croklaan from IOI Corporation Berhad. The acquisition establishes Bunge as a global leader in business-to-business oil solutions with expanded value-added capabilities, reach and scale across core geographies, according to the company.
The enterprise will operate within Bunge’s Food & Ingredients business as “Bunge Loders Croklaan.”
With Loders, Bunge will 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.
Company projections expect Loders to generate US$105 million of full-year EBITDA in 2018, plus US$15 million in synergies.
Bunge also expects the transaction to be accretive to earnings on a cash basis this year.
“This is a transformational acquisition that increases our value-added food and ingredients activities to the 35 percent to 40 percent share of our portfolio we've targeted,” says Soren Schroder, Bunge’s CEO.
“With a comprehensive product offering derived from seed and tropical oils, leading innovation and application capabilities, and world-class sustainability programs, Bunge Loders Croklaan will be the first choice for global edible oils customers seeking to innovate and grow.”
“We’re excited to leverage the combination of Bunge’s integrated supply chain and existing oils portfolio with Loders’ high-end specialty and semi-specialty products to help our customers grow their brands and businesses around the world,” adds Gordon Hardie, Bunge’s President of Food & Ingredients.
“We’re also excited to begin working alongside our new colleagues, whose deep market and technical knowledge will benefit our continuing development of a wide range of edible oils applications aligned with consumer trends and customers’ needs.”
Bunge initially announced its intention to strengthen en its edible oil presence last September when it first signaled plans to acquire the 70 percent controlling ownership interest in IOI Loders Croklaan. Read more here.
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