Bunge, a leading global agribusiness and food company operating in over 40 countries, acquires the 70% ownership interest in Malaysia-based palm oil supplier IOI Loders Croklaan.
Bunge Limited announced it has completed its acquisition of a 70% ownership interest in IOI Loders Croklaan from IOI Corporation Berhad. 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.
Bunge expects Loders will generate $105 million of full-year EBITDA in 2018, plus $15 million in synergies. “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.” states Soren Schroder, Bunge’s Chief Executive Officer. Gordon Hardie, Bunge’s President of Food & Ingredients, said, “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.” IOI Corp, which operates oil palm and rubber plantations in addition to doing resource-based manufacturing, had bought Loders Croklaan from consumer goods giant Unilever in 2002 for 217 million euros.