Bunge Limited (NYSE: BG) (“Bunge”) today announced it has completed its acquisition of a 70% ownership interest in IOI Loders Croklaan (“Loders”) from IOI Corporation Berhad (KLSE: IOICORP) (“IOI”). The acquisition establishes Bunge as a global leader in business-to-business oil solutions with expanded value-added capabilities, reach and scale across core geographies. With Loders, Bunge will provide a comprehensive customer offering, from core products to specialties, for B2B customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service segments.
We expect Loders will generate $105 million of full-year EBITDA in 2018, plus $15 million in synergies. We also expect the transaction to be accretive to earnings on a cash basis this year. The enterprise will operate within Bunge’s Food & Ingredients business as “Bunge Loders Croklaan.”
Soren Schroder, Bunge’s Chief Executive Officer, stated, “This is a transformational acquisition that increases our value-added food and ingredients activities to the 35% to 40% share of our portfolio we've targeted. With a comprehensive product offering derived from seed and tropical oils, leading innovation and application capabilities, and world class sustainability programs, Bunge Loders Croklaan will be the first choice for global edible oils customers seeking to innovate and grow.”
Gordon Hardie, Bunge’s President of Food & Ingredients, stated, “We’re excited to leverage the combination of Bunge’s integrated supply chain and existing oils portfolio with Loders’ high-end specialty and semi-specialty products to help our customers grow their brands and businesses around the world. We’re also excited to begin working alongside our new colleagues, whose deep market and technical knowledge will benefit our continuing development of a wide range of edible oils applications aligned with consumer trends and customers’ needs.”
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