BASF completes sale of food, health performance ingredients business to Louis Dreyfus Company
The acquisition provides LDC with access to BASF’s portfolio of oils, fats, glycerin, and lecithin, as well as production and R&D capabilities.
GERMANY – BASF and Louis Dreyfus Company (LDC) have announced the successful completion of the sale of BASF’s Food and Health Performance Ingredients Business, previously part of BASF’s Nutrition & Health division, following approval from the relevant authorities.
The transaction, first announced in January 2025, includes BASF’s production site in Illertissen, Germany, as well as three application laboratories outside of Germany, and approximately 300 employees, who have now transferred to LDC.
The business encompasses a range of food performance ingredients, including whipping agents, emulsifiers, and fat powders, as well as health-focused ingredients such as plant sterol esters, conjugated linoleic acid (CLA), and omega-3 oils for human nutrition, along with several smaller product lines.
These assets strengthen LDC’s capabilities in the rapidly growing plant-based ingredients market, while BASF can sharpen its focus on core areas such as vitamins, carotenoids, and feed enzymes.
“By focusing on vitamins and carotenoids, we are reinforcing our strategic direction toward vital nutrition ingredients for both human and animal nutrition,” said Daniela Calleri, Senior Vice President Nutrition Ingredients at BASF. “We are committed to meeting market demand for high-quality ingredients and ensuring reliable supply for our customers worldwide.”
For LDC, the acquisition marks a significant step in its expansion in the plant-based ingredients space.
James Zhou, LDC’s Chief Commercial Officer and Head of Food & Feed Solutions, stated, “This move enhances and accelerates our capacity to develop innovative solutions for food, personal care, and healthcare applications. We look forward to welcoming our new teams to the LDC family as we open this exciting chapter for the Group and create value for our customers around the world.”
The acquisition provides LDC with access to BASF’s portfolio of oils, fats, glycerin, and lecithin, as well as production and R&D capabilities, enabling the company to expand offerings in bakery and confectionery, non-dairy, instant foods, and healthcare applications.
The deal reflects ongoing consolidation in the food ingredients sector as producers seek healthier and more diverse ingredient solutions in response to evolving consumer preferences.
For BASF, the divestiture allows the company to exit a segment that is no longer a strategic focus, while maintaining its commitment to high-demand nutrition segments and sustainable growth.
Meanwhile, LDC strengthens its global footprint in plant-based and protein ingredient solutions, building on recent investments, including the establishment of a dedicated pulses business unit and plans for a pea protein facility in Canada.
Both parties have agreed not to disclose the financial details of the transaction.
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