CHS to Acquire Soy Protein Giant Solbar for $133 Million
Provided all conditions are met, the parties anticipate closing on the CHS acquisition of Solbar in the first quarter of calendar 2012. Among the required conditions are the approval of the shareholders of Solbar and antitrust approvals in certain jurisdictions outside the United States.
Nov 24 2011 --- CHS Inc., the leading farmer-owned cooperative in the US has signed an agreement with Solbar Industries Ltd., a global leader in specialty soy proteins and soy isoflavones to acquire 100 percent of the shares of Solbar. The purchase price reflects an equity value of approximately $133 million.
Provided all conditions are met, the parties anticipate closing on the CHS acquisition of Solbar in the first quarter of calendar 2012. Among the required conditions are the approval of the shareholders of Solbar and antitrust approvals in certain jurisdictions outside the United States.
Shaul Shelach, Solbar CEO said: "I believe that this change will prove to be a very important mile stone in Solbar’s history. I am convinced that under the leadership of CHS, Solbar will continue to grow and realize its great potential. CHS is a company that believes in agricultural processing and the potential of soybeans and soy based products, but mostly they believe in the importance of developing human resources. CHS will lead the further development of Solbar factories and its people."
Solbar provides soy protein ingredients to manufacturers in the meat, vegetarian, beverage, bars and crisps, confectionary, bakery, and pharmaceutical manufacturing markets. Solbar corporate offices are in Ashdod, Israel, with manufacturing and logistics facilities in Ashdod and Ashkelon, Israel; South Sioux City, Nebraska; and Ningbo, China; and a sales office in Oakdale, Minn. Solbar is a public company, traded on the Tel Aviv Exchange since 2004.
CHS Inc. is the leading cooperative in the US, owned by farmers, ranchers and co-ops across the United States. A diversified energy, grains and foods business and a Fortune 100 company, CHS is committed to providing the essential resources that enrich lives around the world. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex brand refined fuels, lubricants, propane and renewable energy products. CHS preferred stock is listed on the NASDAQ at CHSCP.
Shelach noted, "CHS is a Fortune 100 company and a worldwide leader in the agribusiness sector. CHS has been producing and marketing food grade soy-proteins for more than 40 years, acquiring Solbar will fulfill the desire to expand their product line offerings in the soy-protein marketplace. CHS size and benefits coupled with Solbar's agility and flexibility will provide a good platform to realizing Solbar's full potential."
