Weekly Roundup: BASF closes Bayer seeds buy, ADM strengthens oilseeds processing position
17 Aug 2018 --- In a busy week on the commodity front, BASF closed the acquisition of Bayer’s global vegetable seeds business, ADM reached an agreement to purchase certain assets of Brazil-based Algar Agro and IMCD reported positive results for the first half of 2018. Louis Dreyfus Company (LDC) published its sixth annual Sustainability Report, outlining progress towards its ambitious targets for a sustainable future. In brief: Business US QSR business The Wendy’s Company has accepted an offer from Inspire Brands (Owner of Arby’s, Buffalo Wild Wings, and R Taco) to sell its 12.3 percent ownership interest in the company back to Inspire Brands for $450 million. The agreement was approved by The Wendy’s Company Board of Directors and represents a 38 percent premium on the Wendy’s Company’s previous valuation of the investment. “The sale of our stake in Inspire Brands for US$450 million is a great return on this investment for our shareholders,” said Nelson Peltz, Chairman of the Board of Directors. “Over the past seven years, Wendy’s and its shareholders have benefitted from more than US$100 million in distributions and the monetization of this investment carries a 38 percent premium over its most recent valuation.” The Company views this transaction as one that will provide the company with future flexibility to invest in the growth of the Wendy’s brand and Company and increase its share repurchase program. Hormel Foods and WholeStone Farms, have entered into a definitive agreement to sell the Hormel Foods Fremont, Neb., processing facility to WholeStone Farms, LLC. The transaction is subject to customary closing conditions and is expected to be completed in December 2018. BASF has closed the acquisition of Bayer’s global vegetable seeds business, mainly operating under the brand Nunhems. The transaction adds a well-recognized brand with a very successful business track record to BASF’s portfolio. The acquired vegetable seeds business comprises 24 crops and about 2,600 varieties. It also includes well-established, strong R&D and breeding systems with over 100 unique breeding programs in more than 15 crops. This closing completes BASF’s acquisition of a significant range of businesses and assets with combined 2017 sales of €2.2 billion, which Bayer offered to divest in the context of its takeover of Monsanto. The all-cash purchase price amounts to a total of €7.6 billion, subject to certain adjustments at closing. ADM has reached an agreement to purchase certain assets of Brazil-based Algar Agro, including oilseeds processing facilities in Uberlândia in the state of Minas Gerais, and Porto Franco in Maranhão. “ADM is already the most diversified oilseeds processor in the world, and now we are once more expanding our capabilities to help meet growing global demand,” says Greg Morris, Senior Vice President and President of ADM’s Oilseeds business. “We’ve recently launched our new oilseeds joint venture with Cargill in Egypt, and we have completed several enhancements to our European and North American processing operations. With the addition of these new plants in Brazil, we are further enhancing and strengthening our global network at a time when both the near- and long-term outlook for global meal demand continues to be strong. We’re excited about this bolt-on acquisition, and about all of the actions we are taking to deliver on our strategic plan to enhance shareholder value.” In brief: Sustainability In brief: Product launches In brief: Appointments & retirements The Hershey Company has announced that Patricia A. Little, Senior Vice President and Chief Financial Officer, intends to retire from the company in the spring of 2019. Little has served as the company's CFO since joining in 2015. The company has commenced a search for a CFO successor. Many changes have been announced at the helm of Nordzucker. Lars Gorissen (46), Executive Board member since 2014 and its speaker since March 1, 2018, has been appointed CEO by the Supervisory Board of Nordzucker AG with immediate effect. Furthermore, the Supervisory Board appointed Alexander Bott (44) as the new CFO with effect from August 27, 2018. At an extraordinary Supervisory Board meeting in Braunschweig on August 16, 2018, Jochen Johannes Juister was elected as Chairman of the Supervisory Board of Nordzucker AG and thus as the successor to Hans-Christian Koehler, who passed away at the beginning of July. “The European sugar industry is undergoing significant change. We have difficult times ahead of us. With Lars Gorissen at the helm of the Executive Board, Nordzucker is actively taking on the challenges posed by the liberalization of the European sugar market. I am delighted that an experienced manager with proven leadership qualities has joined us as the Executive Board member for Finance, in the form of Alexander Bott. Furthermore, he is bringing industry knowledge and international experience in the area of finance to the company,” emphasizes Jochen Johannes Juister, Chairman of Nordzucker AG’s Supervisory Board. In brief: Other highlights On the research front, Nick Caporaso has graduated with a raft of papers, prizes and posters under his belt after a hugely successful joint Ph.D. with food research company Campden BRI and the University of Nottingham. Caporaso’s Ph.D. developed food imaging techniques to measure the quality of wheat, cocoa and coffee. He has published seven papers in international peer-reviewed journals, delivered six presentations and presented three posters at national or international conferences. He was jointly supervised by Prof. Ian Fisk, professor of flavor chemistry in the Department of Food Sciences at the University of Nottingham, and Dr. Martin Whitworth, principal scientist in the Department of Production and Processing Research at Campden BRI. Caporaso is continuing his research at the University of Nottingham through a Knowledge Transfer Partnership. By Elizabeth Green To contact our editorial team please email us at editorial@cnsmedia.com 
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