|Soren Schroder, chief executive officer.|
“This is a compelling transaction for Bunge,” said Soren Schroder, chief executive officer. “It delivers on our stated objective to expand our value-added business by accelerating our growth in B2B semi-specialty and specialty oils.
“Together with Loders, we will have a comprehensive product offering derived from seed and tropical oils, with leading innovation, application capabilities and sustainability programs. This complete seed and tropical oil portfolio will position Bunge to be a full-service partner and uniquely able to help our customers innovate and grow for the future.”
Upon completion of the transaction, Bunge will have a 70% controlling ownership interest in IOI Loders Croklaan. IOI Corporation will retain a 30% ownership interest. As part of the transaction, for a period of five years after closing, Bunge will have the right to purchase the remaining interest in Loders from IOI Corporation, and IOI will have the right to sell its interest to Bunge.
The combined business will establish a five-member board of directors consisting of three Bunge representatives and two IOI Corporation representatives. Loders will retain its brand and operate as part of Bunge's Food & Ingredients business with key management team members expected to remain with the combined business.
The acquisition will strengthen Bunge’s position as a solutions provider in such categories as confectionery, baking and infant nutrition. It also will expand the company’s R&D base around the world. IOI Loders Croklaan has technical centers in Malaysia, the Netherlands and the United States.
The acquisition also will give Bunge a stronger presence in the Southeast Asian market. Once the transaction is complete, Bunge’s Food & Ingredients revenues in that region will be four times as large as they are today, according to the company. Bunge also will have an enhanced footprint in Europe and North America, and Loders will have exposure to new markets where Bunge has a strong presence, including Latin America and India.
The transaction has been approved by the boards of directors of both companies, and it is expected to close within the next 12 months.