Bunge to Acquire Raisio's Margarine Business for EUR80 Million

The transaction encompasses the margarine plants in Finland and Poland, as well as several brands, the best known being Keiju, Makuisa, Masmix and Pyszny Duet.

14/05/09 Bunge and Raisio have signed an agreement on the sale of Raisio’s margarine business to Bunge. Bunge Limited is a global company that specialises in foods, the processing and sale of agricultural commodities, as well as fertilizers. The value of the transaction is EUR 80 million. The transaction will also make Bunge a new and significant Benecol partner for Raisio.

The transaction will require the approval of the competition authorities. The duration of authority processing will determine the timing of the transaction, which is currently expected to take place in the third quarter. The buyer will pay the acquisition price in cash. After tax and expenses the sales profit from the divestment is expected to be some EUR 42 million. Raisio’s equity ratio is estimated to be about 72 per cent after the transaction.

Raisio's CEO Matti Rihko says: “The deal is an important step for Raisio towards focusing on grain-based business. The price is also very good. The transaction will bring Raisio a new, significant Benecol partner, who is looking to develop Benecol and functional foods. The divestment will bring further clarity to Raisio’s focus: the company will concentrate on grain-based products.”

Rihko adds: “The margarine business has been put into good shape in the last two years, making it a natural addition to Bunge, which is looking to leverage its position in the Central and Northern European markets. As a global, billion-dollar company, Bunge has both the will and ability to develop the margarine business and to lead consolidation in a big sector. Raisio will continue to sell margarine products as Bunge’s partner in Finland, Sweden and Estonia. In these countries Raisio’s market position and net sales will remain unchanged. In Poland, the transaction targets Raisio Polska Foods Sp. z o.o.; Raisio will continue in grain-based snack business as a smaller, new company. The net sales of Raisio Polska Foods' in 2008 were EUR 49 million.”

The transaction encompasses the margarine plants in Finland and Poland, as well as several brands, the best known being Keiju, Makuisa, Masmix and Pyszny Duet. Bunge will also have a licensing agreement concerning the Sunnuntai and Carlshamn Mejeri brands. Around 330 of Raisio’s Finnish and Polish employees will be transferring to Bunge. The transaction doesn't effect on contract cultivation of oil seeds in Finland.