Lesaffre snaps up 70% stake in Biorigin to strengthen yeast derivative supply chain
Lesaffre has acquired a majority stake in Biorigin, a business unit of Zilor, to improve the supply of yeast derivatives for savory ingredients. The global fermentation giant will become the controlling shareholder of Biorigin, with 70% of its total corporate capital. Zilor will retain its 30% share.
The transaction includes Biorigin’s production unit in São Paulo, Brazil. The companies expect the cooperation to boost production processes, logistics and services in the natural-derived ingredients space of the human food and animal nutrition industries.
Brice-Audren Riché, CEO of Lesaffre says: “This acquisition of a majority stake in Biorigin will offer development opportunities to meet the growing needs of the human food and nutrition industries, as society currently demands savory ingredients from natural sources. We are stepping up to a new dimension thanks to this strategic move to reinforce Lesaffre and its Business Unit Biospringer by Lesaffre as global players in the field of yeast extracts for the savory ingredients market.”
“We are doing this with a key strategic partner, Zilor, who shares similar values to Lesaffre and a strong focus on CSR. Committed to delivering responsible taste through Biospringer and together with Biorigin, we are well-positioned to deliver enhanced yeast derivative and savory ingredient solutions to customers around the world.”
The deal is subject to approvals from creditors and other legal and regulatory authorities, including the Administrative Council for Economic Defense. The process is expected to be completed over the next few months, after which Biorigin and Lesaffre will remain independent.
Securing supply
Biorigin’s brand will produce, market and sell the products. The business units in Lençóis Paulista and Macatuba, as well as the products developed from alcoholic fermentation yeast and brewer’s yeast at those locations, will continue to be handled and sold by Zilor.
“Biorigin’s 20-year history has been marked by innovation and commitment to sustainability. Throughout this time, Biorigin has built solid, long-term business partnerships with great respect for its customers and other stakeholders. This partnership will be a great opportunity to contribute to sustainable development and enhance the supply of yeast derivatives,” says Fabiano Zillo, CEO of Zilor.
“This deal will allow Biorigin to incorporate greater expertise, market insight and access to advanced R&D capabilities from Lesaffre and will allow Biorigin’s parent company, Zilor, to join forces with an experienced strategic partner.”
In a similar move toward expansion, dsm-firmenich completed the sale of its yeast extract business to Lesaffre. Some 46 dsm-firmenich employees working on yeast extracts will transfer to Lesaffre as part of the transaction. The company announced the move in June, and as part of the new transaction, Lesaffre will supply yeast extracts to dsm-firmenich for its savory business. Financial details of the transaction were not disclosed.
