BASF has entered a binding agreement to sell its Food and Health Performance Ingredients business to Louis Dreyfus Company (LDC), a global merchant and processor of agricultural goods, including plant-based ingredients. The divestment includes the production site in Illertissen, Germany, and aligns with BASF's strategic portfolio optimization.

The Food and Health Performance Ingredients portfolio addresses human nutrition trends but lacks integration into BASF’s core operations. This decision reflects BASF’s focus on core products like vitamins, carotenoids and feed enzymes within its Nutrition & Health division.

Approximately 300 employees are expected to transition from BASF to LDC upon closing. The transaction ensures continued supplies and business relationships. Financial details remain undisclosed, and the deal is subject to regulatory approvals and customary closing conditions.

“Building on our teams’ success, LDC can offer our employees and portfolio a promising future,” said Michael Heinz, member of BASF’s Board of Executive Directors. “This move enables BASF to focus on core businesses while LDC accelerates its growth in plant-based ingredients.”

Michael Gelchie, LDC’s CEO, highlighted the strategic importance of this investment, saying, “This transaction marks LDC’s entry into dedicated facilities for large-scale food and health performance ingredients production, aligning with our plans for value-added growth.”

The divested portfolio includes food performance ingredients such as aeration agents, emulsifiers and fat powders, along with health ingredients like omega-3 oils, plant sterols and conjugated linoleic acid.