Bunge strikes strategic deal with IFF to expand its plant-based ingredients business

USA – Global agribusiness giant, Bunge Global S.A, has signed a definitive agreement to acquire key assets from International Flavors & Fragrances Inc. (IFF), marking a major step in Bunge’s expansion into plant-based ingredients.

The deal, announced in early August 2025, includes IFF’s lecithin, soy protein concentrate, and soy crush operations, businesses that generated approximately US$240 million in revenue in 2024 and employ around 250 people worldwide.

The transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions.

While financial terms were not disclosed, the acquisition aligns with Bunge’s strategy to deepen its presence in the food, feed, and biofuel sectors.

The company, which recently completed a US$8.2 billion merger with Viterra, continues to build on its stronghold in major soybean-producing regions, including Brazil, the U.S., and Argentina.

For IFF, the divestiture reflects a broader portfolio optimisation strategy. CEO J. Erik Fyrwald described the assets as “commoditised” and better suited to Bunge’s operational model.

“They were low-margin and distracting from our differentiated isolated soy protein business,” said Fyrwald, adding that the sale will allow IFF to focus on innovation and application development in its core food ingredients segment.

The move is part of IFF’s ongoing transformation, which includes shedding non-core or lower-margin operations to sharpen its focus on high-value segments like flavors, fragrances, and health solutions.

Earlier in 2025, IFF also divested its Nitrocellulose business, signalling a consistent effort to streamline operations and enhance shareholder value.

For Bunge, the acquisition strengthens its vertical integration and expands its footprint in the plant-based protein and oilseed processing space.

The newly acquired assets will be integrated into Bunge’s agribusiness segment, which processes oilseeds into vegetable oils and protein meals used in cooking oils, animal feed, and biodiesel production.

This strategic deal underscores the shifting dynamics in the global food ingredients market, where companies are increasingly focusing on core competencies, innovation, and sustainable growth.

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