Bunge is to acquire a 70% ownership interest in IOI Loders Croklaan (Loders) from IOI for $946 million. The company says that the transaction expands Bunge’s value-added capabilities, reach and scale across core geographies to establish Bunge as a global leader in B2B oil solutions. Following the completion of the transaction, Bunge’s enlarged product offering will, it says, further support the growth of its customers around the world.

Loders’ portfolio includes the full range of palm and tropical oil-derived products for confectionery, bakery and infant nutrition applications. The company serves global food industry customers in more than 100 countries around the world and reported fiscal year 2016 revenues of $1.6 billion.

“This is a compelling transaction for Bunge,” said Soren Schroder, Bunge’s 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. We are excited about the benefits that this combination will create for Bunge’s shareholders, as well as for the employees, customers and business partners of our companies. The key capabilities that the talented employees of Loders bring in customer intimacy, market knowledge and application development will be a competitive advantage for the combined business. We look forward to welcoming the Loders team to Bunge.”

“We are delighted to join a company that shares our commitment to innovation, sustainability and superior service,” said Julian Veitch, Chief Executive Officer of Loders. “Together, we will be a leader in innovation with global applications capabilities, making us the supplier of choice to our customers. I also expect Loders employees to benefit as they become part of a larger, global organization. We look forward to working with the Bunge team to maximize the opportunities that this transaction creates."