DuPont, a US-based chemicals maker headquartered in Delaware, has purchased full ownership of soy-based ingredients major, Solae, from Bunge, for $440m.
Solae was formed in 2003 through a joint venture between DuPont and Bunge. Previously, DuPont had 72% in the JV while Bunge owned the remaining 28%.
The new transaction is part of DuPont's aim to fortify its position in the food ingredients market.
DuPont Nutrition & Health president Craig F. Binetti said the company's long-term segment financial targets are to report sales of 7-9% CAGR, while expanding pre-tax earnings margins to about 12-14% .
With the acquisition of the full ownership of Solae, DuPont expects to deliver toward the upper end of its margin targets with the planned synergies.
Headquartered in St. Louis, Missouri, Solae develops food, feed and industrial ingredients, focusing on soy, and its ingredients are used in over 80% of all clinical research on soy protein.
According to the chemicals company, the deal benefits its customers, by allowing it to enhance the speed of innovation, food formulation and nutrition science capabilities throughout a wide variety of specialty food ingredients.
In January last year, DuPont also acquired Danisco, a provider of food ingredients, enzymes and bio-based services, for $5.8bn.
DuPont Executive Vice President James C. Borel said the new investment in Solae, along with the acquisition of Danisco last year, has significantly improved its position in food ingredients market.
"Solae's scientific expertise and market leadership in soy is a critical element in our plans to enhance the quality and quantity of food for a growing global population.," Borel added.
DuPont said it looks forward to leveraging the combined capabilities of Solae and Danisco in order to explore new opportunities and drive solutions through science and technology.
Founded in 1802, DuPont currently operates in about 90 countries, and offers a variety of products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.
