Corbion has completed the acquisition from Bunge Limited of Bunge’s stake in the SB Renewable Oils joint venture. Back in February 2018, Corbion initially confirmed that it was in discussions with Bunge about the potential acquisition of Bunge’s stake in the SB Renewable Oils joint venture.
Bunge disclosed the talks as part of its strategic update, which shows some pressure on the 200-year-old company which was also approached by Archer Daniels Midland (ADM) as part of a takeover bid.
Corbion has now officially acquired Bunge’s 49.9 percent stake in SB Renewable Oils, a joint venture that operates a facility in Brazil, specializing in the production of algae ingredients, such as Omega 3 rich oil, for aquaculture and animal feed. Corbion now is 100 percent owner of the plant in Orindiúva, which employs around 170 staff.
“We are delighted to welcome the team in Orindiúva as part of our global family. They are a pivotal part of our Algae Ingredients business, the innovative platform we acquired last year. We are strongly committed to developing this line of business,” notes Tjerk de Ruiter, CEO Corbion.
Corbion has assumed Bunge’s share in the external debt of the joint venture, including accrued interest (BRL 57 million equates to US$15 million) and has repaid Bunge’s working capital loan (BRL 29 million equates to US$8 million). Additionally, a 5-year earn-out provision starting in 2021 has been agreed to. This earn-out is based on sales of AlgaPrime DHA, with a maximum present value of US$20 million. As the SB Renewable Oils plant is located adjacent to one of Bunge’s sugar mills, long-term supply agreements have been secured regarding sugar and utilities. Approval by the relevant regulatory bodies in Brazil has been obtained.
Additionally, in September 2017, Bunge announced its plans to strengthen its edible oil presence with a US$946 million deal to acquire a 70 percent controlling ownership interest in IOI Loders Croklaan. You can read the full story here.
According to Bunge, these transactions expand the companies’ “value-added capabilities, reach and scale across core geographies” to establish itself as a global leader in business-to-business oil solutions.
Speaking in the February edition of our sister publication The World of Food Ingredients, Senior Vice President for Food at Corbion, Ruud Peerbooms discussed other acquisitions and innovations that are driving growth such as the potential market for meat alternatives and the recent TerraVia acquisition.
“If you want to be there that means that you basically need to be active in alternative proteins, which is what they can deliver. So besides the business, we have today in TerraVia, which is in DHA enrichment for feed, part of their portfolio delivers all kinds of alternative protein sources are available,” he says.
“Today their DHA business is fully-scaled, through their joint venture with Bunge, with DHA-rich algae that is mainly used in the aquaculture space. All of the rest is still in development.”
Source: Food Ingredients First
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.