ROTTERDAM, THE NETHERLANDS — The Louis Dreyfus Co. (LDC) is acquiring BASF’s food and health performance ingredients business. Terms of the acquisition were not disclosed.
The acquisition includes a manufacturing facility in Illertissen, Germany. The BASF business produces such ingredients as aeration and whipping agents, emulsifiers, plant sterol esters, conjugated linoleic acid, omega-3 oils and others.
“In line with our strategic plans for revenue diversification through more value-added products and growth in downstream markets, this agreement is an opportunity to accelerate LDC’s participation in the rapidly growing plant-based ingredients market,” said Michael Gelchie, chief executive officer of LDC. “We are excited about the prospect of this transaction, as LDC’s first investment in dedicated facilities to produce food and health performance ingredients at scale.”
The food and health performance ingredients business was no longer a strategic focus for BASF, according to the company.
“The divestment of this business to LDC supports our strategic portfolio optimization and will allow us to focus on our core businesses in nutrition and health,” said Michael Heinz, head of BASF’s Nutrition & Health business. “We remain committed to leveraging our core product platforms and expanding our business in key areas such as vitamins, carotenoids and feed enzymes.”
LDC has been investing in the market for plant-based proteins and ingredients since 2021. In 2022, the company opened a research and development facility in the San Francisco Bay Area focused on its plant protein business. In 2024, the company began constructing a pea protein processing plant in Yorkton, Sask. The new facility will offer functional ingredients for dairy alternatives, high-protein nutrition solutions and other plant-based applications, according to the company.