DuPont acquires full ownership in soy joint venture

DuPont, a US-based chemicals company, has paid $440m to Bunge to gain full ownership of soy-based ingredients company Solae, as part of DuPont’s strategy to strengthen its food ingredients business.

Previously, DuPont owned a 72% stake, while Bunge owned the remaining 28% in the Solae JV, which was formed in 2003.

DuPont Nutrition & Health president Craig F Binetti said the acquisition enables the company to further increase the speed of innovation, food formulation and nutrition science capabilities across a wide range of speciality food ingredients.

"Our long-term segment financial targets are to post sales of 7%-9% CAGR and expand pre-tax earnings margins to a range of 12%-14%. With full ownership of Solae, DuPont anticipates delivering toward the upper end of our margin targets with the planned synergies," Binetti added.

Solae will join DuPont’s nutrition and health division, but will retain its name and business strategy.

US-based agribusiness and food company Bunge expects to re-invest the capital from the sale into its strategic core-businesses.

This transaction is the latest effort by DuPont to boost its food ingredients business. In May 2011, the company acquired Danish food additives maker Danisco for $6.4bn.

DuPont executive vice president James C Borel said the investment in Solae, along with the acquisition of Danisco in 2011, has significantly strengthened the company’s leadership position in food ingredients.

"Solae’s scientific expertise and market leadership in soy is a critical element in our plans to enhance the quality and quantity of food for a growing global population," Borel said.

Solae develops soy technologies and ingredients for food, meat and nutritional products and has manufacturing plants in the US, Brazil, Mexico, Denmark, France, Italy, Belgium and China, with approximately 2,400 employees.

 

Image: Solae global headquarters in St. Louis, Missouri. Photo: DuPont