WHITE PLAINS, N.Y. — Bunge Ltd. on March 1 completed its acquisition of a 70% ownership interest in IOI Loders Croklaan for approximately $946 million from IOI Corporation Berhad. IOI Loders Croklaan manufactures palm- and tropical-oil products and generated sales of approximately $1.6 billion in fiscal 2016.
According to Bunge, the acquisition of Loders establishes Bunge as a global leader in business-to-business oil solutions with expanded value-added capabilities, reach and scale across core geographies. The addition of Loders is expected to provide Bunge with 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.
Bunge said it expects Loders will generate $105 million of full-year EBITDA in 2018, plus $15 million in synergies. The company also expects the transaction to be accretive to earnings on a cash basis this year. Loders will operate within Bunge’s Food & Ingredients business as “Bunge Loders Croklaan.”
|Soren Schroder, c.e.o. of Bunge|
“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,” said Soren Schroder, chief executive officer of Bunge. “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, president of the Food & Ingredients business unit at Bunge|