Louis Dreyfus Company (LDC) has announced the signing of a binding agreement to acquire BASF’s Food and Health Performance Ingredients business. The deal includes a production site and a cutting-edge R&D center in Illertissen, Germany, along with three application labs outside the country.

“This acquisition aligns with our strategy to diversify revenue through value-added products and expand in downstream markets,” stated Michael Gelchie, CEO of LDC. “It presents a significant opportunity for us to deepen our presence in the fast-growing plant-based ingredients sector. We’re thrilled about this milestone, marking LDC’s first dedicated investment in large-scale food and health performance ingredient production.”

Michael Heinz, BASF Executive Board Member overseeing the Nutrition & Health division, expressed optimism about the transaction. “After years of successfully developing this business, transitioning it to LDC offers our employees and portfolio promising growth opportunities. The divestment aligns with BASF’s strategic focus on core areas like vitamins, carotenoids, and feed enzymes, enabling us to optimize our portfolio and strengthen key platforms,” he said.

BASF’s Food and Health Performance Ingredients business specializes in plant-based food performance ingredients, emulsifiers, and health ingredients, distributed globally. Through the acquisition, LDC aims to build on its existing strengths in oils, fats, glycerin, and lecithin, leveraging its global supply chain to solidify its position in the nutritional and functional ingredients market.

James Zhou, Chief Commercial Officer and Head of Food & Feed Solutions at LDC, highlighted the synergy between the two portfolios. “BASF’s business complements LDC’s Food & Feed Solutions Platform perfectly. This integration enhances our ability to transition from a raw material supplier to a trusted solutions advisor, partnering with global customers to develop innovative applications across bakery, confectionery, non-dairy, instant foods, personal care, and healthcare sectors,” he explained.

The agreement remains subject to regulatory approvals and customary closing conditions, with both companies optimistic about the transformative potential of the deal.

By integrating BASF’s expertise with its own, LDC is poised to accelerate its evolution in the food and health performance ingredients space, reinforcing its commitment to delivering innovative, sustainable solutions to meet global demands.

Founded in 1851, Louis Dreyfus Company (LDC) is a leading global merchant and processor of agricultural goods. With an extensive asset network and worldwide reach, the company ensures safe, reliable, and responsible delivery of products to customers and consumers, precisely when and where they are needed. LDC’s operations cover the entire value chain—from farm to fork—across diverse business platforms, including Carbon Solutions, Coffee, Cotton, Food & Feed Solutions, Freight, Global Markets, Grains & Oilseeds, Juice, Rice, and Sugar. Annually, the company originates, processes, and transports approximately 80 million tons of products, helping to feed and clothe around 500 million people worldwide.