French yeast manufacturer Lesaffre has agreed to acquire a majority stake in Biorigin to enhance the supply of yeast derivatives for savoury ingredients.
Biorigin is a business unit of Zilor, a multinational company producing yeast-derivative products.
The acquisition includes Biorigin’s production unit in Quatá, São Paulo, an industrial plant based in Brazil, with an ample supply of sugar, water, and renewable energy resources.
It aims to use Lesaffre and Biorigin’s complementary capabilities to enhance yeast derivative and savoury ingredient solutions for customers worldwide.
Also, the deal will enhance production capacity and bring new solutions that are based on the production and marketing of naturally derived food ingredients.
Lesaffre CEO Brice-Audren Riché said: “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 savoury 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 delivering responsible taste through Biospringer, and together with Biorigin, we are well-positioned to deliver enhanced yeast derivative and savoury ingredient solutions to customers around the world.”
The transaction is expected to be completed over the next few months, subject to customary closing conditions, including approval from creditors and other legal and regulatory approvals.
Until closing, Biorigin’s brand will continue producing, marketing, and selling the products.
Zilor will continue to handle and sell products made from alcoholic fermentation yeast and brewer’s yeast manufactured at the units in Lençóis Paulista (SP) and Macatuba (SP).
Also, Biorigin and Lesaffre will operate independently, keeping their businesses as usual.
Upon closing, Lesaffre will become the controlling shareholder with 70% of Biorigin’s total corporate capital, and Zilor will continue as a shareholder with 30%.
Zilor CEO Fabiano Zillo said: “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.”
In a separate development, Lesaffre has agreed to acquire Altar, a French start-up specialising in Adaptive Laboratory Evolution (ALE).
Altar is expected to complement Lesaffre’s existing know-how and technologies to boost the Group’s capacity in fermentation and microorganisms.
