BASF has sold its Food and Health Performance Ingredients Business to the Louis Dreyfus Company (LDC), marking a decisive strategic shift for both global entities in the booming specialized nutrition market.
The global food and nutrition sector witnessed a major portfolio realignment today as chemical giant BASF and agricultural merchant Louis Dreyfus Company (LDC) announced the successful closure of the sale of BASF’s Food and Health Performance Ingredients Business. Following approval from relevant regulatory authorities, the transfer officially finalized a strategic move designed to sharpen the focus of both organizations within their respective areas of expertise.
The divested business, previously operating under BASF’s Nutrition & Health division, is a robust unit focused on specialized ingredients. The transaction encompasses a significant production site in Illertissen, Germany, along with three key application laboratories located outside of Germany, crucial for product development and customer support. Approximately 300 employees specializing in ingredient formulation and production have transferred to LDC, ensuring continuity and bringing deep expertise into the new structure.
The portfolio is centered around two main areas: food performance and health ingredients. The food performance segment includes vital functional components such as whipping agents, high-quality emulsifiers, and specialized fat powders used to improve the texture, stability, and mouthfeel of processed foods. On the health side, the acquisition brings LDC a valuable lineup of nutraceuticals, including plant sterol esters—highly sought after for their scientifically proven ability to lower LDL cholesterol—conjugated linoleic acid (CLA), and essential omega-3 oils for human nutrition, along with several smaller product lines critical to the functional food space.
For BASF, the divestiture is a calculated strategic step toward optimization and prioritization. The company aims to consolidate its resources and investment power into its core product platforms that offer the highest synergistic value. Daniela Calleri, Senior Vice President Nutrition Ingredients at BASF, articulated this refined focus, stating, “By focusing on vitamins and carotenoids, we are reinforcing our strategic direction toward vital nutrition ingredients for both human and animal nutrition. We are committed to meeting market demand for high-quality ingredients and ensuring reliable supply for our customers worldwide.” This move firmly establishes BASF’s role as a concentrated provider of essential micronutrients.
In contrast, the acquisition represents a significant upward leap for LDC, further cementing its position in the rapidly expanding downstream plant-based ingredients market, which is experiencing double-digit growth globally. LDC, primarily known as a major merchant and processor of agricultural commodities, views the acquired assets as a cornerstone for diversifying its revenue streams through higher-value-added products.
