Today Bunge announced it will acquire a 70% controlling ownership interest in Loders Croklaan (subject to approvals from regulatory authorities). IOI Corporation will retain a 30% ownership interest. Together, Bunge and Loders Croklaan will have a differentiated, comprehensive product offering that reflects both seed and tropical oils, and world-class formulation and application capabilities. We will form a truly global Food Ingredients company with a sustainable and traceable supply chain, positioning us well to help our customers distinguish their consumer offerings.
We are excited about the benefits this combination will create for our customers, employees and shareholders of both our companies:
• Creates comprehensive product offering and accelerates shift towards higher value-added products with new specialty edible oils solutions: The transaction combines Bunge’s vertically integrated upstream capabilities and existing edible oils portfolio, predominantly based on seed oils, with Loders Croklaan’s specialty products from tropical feed stock (such as palm, coconut and shea). Bunge’s and Loders Croklaan’s portfolios, combined, result in a comprehensive offering, from bulk to specialties, for B2B customers in industrial food processing, industrial and artisanal bakery, confectionery, food service and infant nutrition.
• Combines highly complementary asset bases: Both companies have highly complementary asset bases. The partnership will diversify Loders Croklaan’s manufacturing and R&D network across core geographies like North America, Europe, Asia, and provide exposure to new markets including Latin America, Africa and India. The combined portfolio will have a truly global, integrated Agri-Food value chain that makes traceability from farmer to customer possible.
• Provides a world-class innovation platform with premier formulation and application capabilities: Loders Croklaan is a recognized solutions provider with a substantial intellectual property portfolio. The intent is to preserve and build these capabilities and facilities, as well as Loders Croklaan’s heritage of innovation, and continue developing Loders Croklaan’s key applications in bakery, confectionery and human nutrition.
• Maintains Loders Croklaan’s strong sustainability commitments: Bunge and Loders Croklaan are committed to sustainable sourcing, including zero-deforestation, zero peat conversion, human rights protections, traceability and transparency. This transaction will facilitate the sharing of best-practices and expand engagement with third party organizations. Both companies are committed to increasing the traceability of their supply chains and collaborating in projects that help advance sustainability across the palm oil industry.
Given the complementary nature of our product portfolios, we see a lot of opportunity to further strengthen our respective customer relationships and do not expect significant changes to Loders Croklaan’s operations and employee bases. This compelling transaction delivers on Loders Croklaan’s Vision 2025 growth plans by combining with Bunge’s global manufacturing base in more than 40 countries, as well as their expertise in seed oils.
Bunge and Loders Croklaan are fully aligned on the priorities – namely ensuring that we are a vital and valued supplier to our customers and an employer of choice for our associates, which will enable us to drive significant value for our shareholders.
This message is also published on the IOI Group and Bunge website