Corbion, a global ingredient solutions provider, and Kingswood Capital Management, LP, a mid-market private equity firm with extensive experience in food and beverage company carve-outs and investments, have agreed to a binding agreement regarding the sale of Corbion’s emulsifiers business. Signed a powerful contract. . The sale is subject to certain conditions, including regulatory approval, and will allow Corbion to increase its focus on fermentation-based technologies, while providing customers and stakeholders in its emulsifier business with an opportunity to proceed with the separation. We will be able to provide you with a reliable partner.
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The sale of Corbion’s emulsifiers business builds on Corbion’s Advance 2025 strategy, announced in March 2020, to advance the advanced fermentation capabilities essential to achieving the company’s core purpose of “preserving what matters.” We are focused on further growing a set of core competencies built around specialized expertise.
“Corbion takes great pride in its heritage as a pioneer and leader in the emulsifier industry and is grateful to our dedicated employees and loyal customers who have contributed to this successful chapter in our company’s history. ” said Andy Mueller, President of Corbion Sustainable Food Solutions. Muller also emphasized that post-sale considerations played an important role in the search for a new owner for Corbion. “This was very important as it was part of building the high-end emulsifier business at Corbion.” That’s what we care about most when considering potential new owners. We believe this agreement will help connect our customers and employees with the right partners and leadership to take them further. ”
Los Angeles-based Kingswood acquired the emulsifier business from Corbion for a cash purchase price of $362 million, with expected net cash proceeds of approximately $275 million before taxes and transaction costs. The deal includes transportation assets, as well as his two U.S.-based manufacturing plants and approximately 175 employees. Corbion and Kingswood will work together on a supply and service agreement to enable a smooth transition and ensure customers continue to experience a high level of service. The transaction is expected to close in the second quarter of this year.
“Kingswood is excited to advance this world-class emulsifier business and build on its great tradition by continuing to provide best-in-class service. We are pleased to partner with Corbion in the creation of our application emulsifiers business,” said Alex Wolff, Managing Partner at Kingswood. “The unique and important benefits these products offer manufacturers will allow emulsifiers to play an important role in meeting the evolving needs of global markets in both food and non-food applications. ” added Andrew Kobach, Managing Director of Kingswood. We are confident that the emulsifier business will be well managed under Kingswood’s management and will receive strong support from its new owners. I would like to thank my colleagues for their dedication to developing our emulsifiers business over the years and wish them great success in the coming years,” said Olivier Rigaud, CEO of Corbion. Lazard is serving as financial advisor to Corbion and Stinson LLP is serving as legal advisor in connection with the transaction. Kirkland & Ellis is serving as legal advisor and Configuration Partners is serving as debt advisor to Kingswood.