Joint venture targets specialty food ingredients
8 Jan 2003
DuPont and Bunge Limited are to form a joint venture to produce and distribute specialty food ingredients, beginning with soy proteins and lecithins.
In addition, as part of a broader alliance between the two, they will also jointly develop and commercialise soybeans with 'improved quality traits'.
The joint venture, dubbed Solae, will provide textured vegetable proteins, soy concentrates and isolates and specialty lecithins.
DuPont will contribute its Protein Technologies food ingredients business for a majority interest in the joint venture.
In exchange for its specialty food ingredients businesses, Bunge will receive a 28% interest in the joint venture plus an estimated $260 million in cash, to be funded by joint venture debt, and will have the right to increase its ownership to 40% based upon a pre-agreed formula.
The joint venture's board will be made up of four members, two each from DuPont and Bunge.
Initially, global revenues of Solae LLC are expected to exceed $800 million annually. Based in St. Louis, MO, the joint venture is scheduled to start up later this year subject to negotiation of definitive agreements which will contain customary closing conditions including regulatory approvals.
