Corbion, a worldwide ingredient options supplier, and Kingswood Capital Administration, LP, a middle-market personal fairness agency with important expertise in company carve-outs and investments associated to meals and beverage, have signed a binding settlement concerning the sale of Corbion’s emulsifiers enterprise. The sale, which is contingent upon the satisfaction of sure circumstances, together with regulatory approvals, will enable Corbion to sharpen its concentrate on fermentation-based applied sciences whereas offering clients and stakeholders of the emulsifiers enterprise a trusted companion in navigating company divestitures.   

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The divestment of Corbion’s emulsifiers enterprise follows Corbion’s Advance 2025 technique, introduced in March 2020, specializing in additional rising a set of core competencies constructed round superior experience in fermentation which can be important to fulfilling the corporate’s central function, to “protect what issues.”   

“Corbion takes immense delight in its heritage as a pioneer and chief within the emulsifier trade, and we recognize the devoted workers and dependable clients who contributed to this profitable chapter in our historical past,” mentioned Andy Muller, President of Sustainable Meals Options at Corbion.   Mr. Muller additionally emphasised the numerous position post-divestiture concerns performed in Corbion’s seek for a brand new proprietor. “Caring in regards to the welfare of each our clients and our workers has at all times been a part of constructing a premium emulsifiers enterprise at Corbion, in order that was very a lot on our minds when potential new house owners. We consider this deal matches our clients and workers with the correct companions and management to assist take them even additional.” 

Based mostly in Los Angeles, Kingswood will purchase the emulsifier enterprise from Corbion for a money buy worth of $362M, with anticipated internet money proceeds of roughly $275M, submit tax and transaction prices. The transaction contains, amongst different conveying belongings, two US-based manufacturing vegetation and c.175 workers. Corbion and Kingswood will work collectively, with provide and repair agreements in place, to allow a easy transition and to make sure that clients proceed to expertise a excessive degree of service. The transaction is predicted to shut within the second quarter of this 12 months.  

“Kingswood is happy to take this world-class emulsifiers enterprise ahead and construct on its super heritage by persevering with to offer best-in-class service. We’re delighted to companion with Corbion in creating the biggest standalone pure-play emulsifiers enterprise in North America,” mentioned Alex Wolf, Managing Associate at Kingswood. “The distinctive and necessary advantages these merchandise present for producers will enable emulsifiers to play a key position in assembly evolving wants within the world market, each for meals and non-food functions,” added Andrew Kovach, Managing Director at Kingswood. “We’re assured that the emulsifier enterprise will likely be in good palms beneath Kingswood’s stewardship and can obtain robust assist from their new house owners. I need to thank our colleagues who’ve labored arduous to develop our emulsifier enterprise for a few years, and we want them nice success within the years forward,” mentioned Olivier Rigaud, CEO Corbion. Lazard is serving as monetary advisor and Stinson LLP as authorized counsel to Corbion for this transaction. For Kingswood, Kirkland & Ellis is serving as authorized counsel and Configure Companions as debt advisory. 

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