According to BASF, the business is no longer a strategic focus as it has limited synergies and integration with the group’s activities. Financial details of the transaction were not disclosed.

As part of the agreement, approximately 300 employees are expected to transfer from BASF to LDC as of the closing of the transaction. The transaction will not affect the continuity and reliability of supply and business relationships, BASF said.

“Building on our teams’ success to develop this business very well over the last years, LDC as a future-oriented company can offer our employees and the portfolio a promising perspective,” commented Michael Heinz, member of BASF’s board of executive directors and responsible for the Nutrition & Health division. “The divestment of this business to LDC supports our strategic portfolio optimization and will allow us to focus on our core businesses in Nutrition & Health. We remain committed to leveraging our core product platforms and expanding our business in key areas such as vitamins, carotenoids and feed enzymes.”

“In line with LDC’s strategic plans for revenue diversification through more value-added products and growth in downstream markets, this agreement is an opportunity to accelerate LDC’s participation in the rapidly growing plant-based ingredients market,” added Michael Gelchie, LDC’s CEO. “We are excited about the prospect of this transaction, as LDC’s first investment in dedicated facilities to produce food and health performance ingredients at scale.”

The food and health performance ingredients business includes food performance ingredients such as aeration and whipping agents, food emulsifiers and fat powder grades; health ingredients such as plant sterols esters, conjugated linoleic acid (CLA), omega-3 oils for human nutrition and some smaller product lines.

The transaction is subject to customary closing conditions, including approval from relevant regulatory bodies.