Louis Dreyfus Company (LDC) announced today that it has signed a binding agreement to acquire BASF’s Food and Health Performance Ingredients business. The acquisition includes a production site, an R&D center in Illertissen, Germany, and three application labs outside of Germany.
The acquisition is part of LDC’s strategy to diversify its revenue through value-added products and strengthen its presence in the plant-based ingredients market. Michael Gelchie, CEO of LDC, highlighted the company’s commitment to accelerating growth in downstream markets with this move, marking LDC’s first investment in dedicated facilities for food and health performance ingredients.
Michael Heinz, a member of BASF’s board, noted that the sale aligns with BASF’s strategy to optimize its portfolio and refocus on its core Nutrition & Health businesses, including vitamins and carotenoids.
The Food and Health Performance Ingredients business, which includes plant-based food performance ingredients, emulsifiers, and health ingredients, complements LDC’s existing product portfolio. LDC plans to leverage its expertise in oils, fats, glycerin, and lecithin to strengthen its position in the global nutritional and functional ingredients markets.
James Zhou, LDC’s Chief Commercial Officer, emphasized that the acquisition would support LDC’s transition from a raw material supplier to a solutions provider, partnering with customers across various industries including bakery, confectionery, non-dairy, and personal care. The transaction is subject to regulatory approvals and customary closing conditions.
