Lesaffre acquires majority stake in Biorigin to strengthen and broaden its savory ingredients offering

As a result of the deal, Lesaffre will become the controlling shareholder of Biorigin with 70% of its total corporate capital, while Zilor will remain a shareholder with 30%. The deal includes Biorigin's production unit in Quatá/São Paulo, an industrial plant, based in the attractive country of Brazil where there is abundant sugar, water and renewable energy resources.
The aim of this deal is to leverage Lesaffre's and Biorigin's complementary capabilities to enable enhanced yeast derivative and savory ingredient solutions for customers worldwide. The business combination between Lesaffre and Biorigin will offer customers benefits by upgrading production capacity and new solutions based on the production and marketing of naturally derived ingredients for human food and animal nutrition industries.

For Brice-Audren Riché, CEO of Lesaffre, "This acquisition of a majority stake in Biorigin represents an exciting new chapter for Lesaffre. It will offer development opportunities to meet the growing needs of the human food and nutrition industries, as society currently demands savory ingredients from natural sources. We are stepping up to a new dimension thanks to this strategic move to reinforce Lesaffre and its Business Unit Biospringer by Lesaffre as global players in the field of yeast extracts for the savory ingredients market. Importantly, we are doing this with a key strategic partner, Zilor, who shares similar values to Lesaffre and a strong focus on Corporate Social Responsibility. Committed to deliver responsible taste through Biospringer, and together with Biorigin, we are well-positioned to deliver enhanced yeast derivative and savory ingredient solutions to customers around the world."

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For Fabiano Zillo, CEO of Zilor, 'Biorigin's 20-year history has been marked by innovation and commitment to sustainability. Throughout this time, Biorigin has built solid, long-term business partnerships, with great respect for its customers and other stakeholders. We believe this partnership will be a great opportunity to contribute to sustainable development and enhance the supply of yeast derivatives to the human food and animal nutrition markets. This deal will allow Biorigin to incorporate greater expertise, market insight and access to advanced R&D capabilities from Lesaffre and will allow Biorigin's parent company, Zilor, to join forces with a highly capable and experienced strategic partner."

Biorigin's brand will be kept for producing, marketing and selling the products.

The units in Lençóis Paulista (SP) and Macatuba (SP), and the products made from alcoholic fermentation yeast and brewer's yeast, manufactured at those locations will continue to be handled and sold by Zilor.

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The deal is subject to the fulfillment of the usual preconditions for such transactions, including the approval from creditors and other legal and regulatory approvals, including the Administrative Council for Economic Defense (CADE), and it is expected to be concluded over the next few months.

Until then, Biorigin and Lesaffre shall remain totally independent, keeping their businesses as usual.

ABOUT LESAFFRE

Lesaffre is a key global player in fermentation for more than a century. Established on all continents through 80 production sites in 50 countries, it counts 11,000 employees and more than 96 nationalities. On the strength of this experience and diversity, Lesaffre works with customers, partners and researchers to find ever more relevant answers to the needs of food, health, naturalness and respect for our environment. Thus, every day, Lesaffre explores and reveals the infinite potential of microorganisms.

To nourish 9 billion people, in a healthy way, in 2050 by making the most of our planet's resources is a major and unprecedented issue. We believe that fermentation is one of the most promising answers to this challenge.

Lesaffre – Working together to better nourish and protect the planet 

ABOUT ZILOR

Zilor, a Brazilian multinational with 78 years of experience, is one of the leading companies in the sugar-energy sector and diversifies its portfolio into two divisions: agroindustry, focused on the cultivation and processing of sugarcane for the production of sugar, ethanol, and clean, renewable electric energy; and natural ingredients, operating through the Biorigin unit, which specializes in biotechnological processes for the production of ingredients for the food, pet food, and animal nutrition and health industries.

The agroindustry division has three production units in Brazil, located in the countryside of São Paulo state, in the cities of Lençóis Paulista, Macatuba, and Quatá; the Biorigin division also currently operates three production units in Brazil, located in the same cities. Additionally, Biorigin has three Distribution Centers, one in Brazil and two abroad, located in the United States and Belgium, enabling the distribution of natural origin ingredients to over 60 countries, marking its presence on all continents.

Zilor - Build wealth and promote the well-being of society, through the transformation of innovative and natural agricultural resources into food and energy.
 

Source: Lesaffre