BASF Sells Food and Health Business to LDC

According to a December 23 announcement on BASF’s official website, the company has signed a legally binding agreement to sell its Food and Health functional ingredients business (including the Iletten production site in Germany) to Louis Dreyfus Company (LDC). LDC is a global leader in agricultural trade and processing, specializing in high-quality plant-based ingredients.

While BASF’s Food and Health portfolio has played a significant role in addressing trends in human nutrition, the business has limited synergies with BASF’s other divisions and is no longer a strategic focus for the company.

Key Details:

• Approximately 300 employees are expected to transfer from BASF to LDC after the transaction closes.
• The financial terms of the transaction have not been disclosed.
• The transaction will not impact the reliable supply of products or existing business relationships.

Statements from Leaders:

• Michael Heinz, Member of BASF’s Board and Head of Nutrition & Health:
• "Our team has achieved remarkable progress in this business over the years. LDC provides an excellent future for our employees and product portfolio."

• Michael Gelchie, CEO of LDC:
  • "This agreement aligns with LDC’s strategy of revenue diversification through value-added products and downstream market expansion. It accelerates our entry into the rapidly growing plant-based ingredient market, marking LDC’s first investment in specialized facilities for large-scale production of Food and Health functional ingredients."

The sale supports BASF’s goal of optimizing its strategic portfolio, allowing it to focus on core products in nutrition and health, including vitamins, carotenoids, and feed enzymes.