Louis Dreyfus Company Acquires BASF's Food and Health Performance Ingredients Business

Louis Dreyfus Company (LDC), a global leader in agriculture and food ingredients, has announced the acquisition of BASF's Food and Health Performance Ingredients Business.

Agriculture and food ingredients giant Louis Dreyfus Company (LDC) has announced the acquisition of BASF’s Food and Health Performance Ingredients Business in a move that will bolster the former’s presence in the rapidly expanding plant-based sector, as disclosed in a joint statement.

While the financial terms of the deal were not disclosed, the acquisition includes a production and R&D facility in Germany and three additional laboratories. Around 300 BASF employees will also join Louis Dreyfus as part of the agreement.

BASF’s Food and Health Performance Ingredients Business specializes in the production of plant-based emulsifiers, oils, fats, glycerin, and lecithin, among other food performance ingredients. These assets will complement LDC’s existing offerings, catering to the increasing consumer demand for healthier, plant-based products.

“This acquisition marks a key step in LDC’s evolution from a raw material supplier to a trusted solutions advisor,” said James Zhou, Chief Commercial Officer at Louis Dreyfus. “By integrating BASF’s portfolio, we aim to develop innovative applications for the bakery, confectionery, non-dairy, instant foods, personal care, and healthcare markets.”

The divestment of this division aligns with BASF’s strategic pivot to focus on higher-growth core areas, as stated by Michael Heinz, a member of BASF’s board of executive directors. According to Heinz, plant-based ingredients no longer fit within the company’s strategic objectives.

Instead, BASF plans to strengthen its position in vitamins, carotenoids, and feed enzymes, leveraging its core product platforms for sustainable growth. This divestiture also helps streamline BASF’s operations and potentially improves cash flow, especially as the plant-based meat market faces challenges.

Leading companies in the sector, such as Beyond Meat and Impossible Foods, have encountered slowing demand, which has led to layoffs and revised business strategies.

LDC has been making several recent moves in the protein ingredients space, with the acquisition of BASF’s plant-based unit being the latest.

In 2024, the company announced plans for a pea protein facility in Canada, expanding its capabilities in alternative proteins. Last summer, LDC also launched a dedicated business unit focused on pulses, including lentils and beans, further diversifying its product offerings.

This acquisition demonstrates Louis Dreyfus’ strategy to capture a larger share of the global plant-based food market while enhancing its innovation pipeline to meet evolving consumer preferences. The move also reinforces LDC’s position as a leader in sustainable and health-focused food solutions.