Bunge Global has acquired IFF's soy and lecithin business, a move that is poised to enhance Bunge's product portfolio and strengthen its position in the F&B sector.

The agreement involves the purchase of nearly all assets related to IFF's lecithin, soy protein concentrate and crush operations, which generated approximately $240 million in revenue in 2024.

Bunge, a leader in agri-business, is strategically expanding its capabilities in the food ingredients space. The acquisition includes operations that employ approximately 250 people globally and is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions.

Although financial terms of the deal have not been disclosed, this acquisition aligns with Bunge's recent growth trajectory, including its $8.2 billion merger with Viterra earlier this year.

J Erik Fyrwald, CEO of IFF, highlighted during a conference call that the divested products were better suited for Bunge's operational expertise.

“They’re highly commoditised and managed far more efficiently by Bunge than they were by us,” said Fyrwald. He noted that these products delivered only low single-digit EBITDA margins for IFF, and selling them will enable the company to focus on its more specialised isolated soy protein business – boosting both margins and innovation potential.

This acquisition is expected to bolster Bunge's existing product lines, particularly in the growing sectors of plant-based proteins and clean label ingredients.

Bunge's processing capabilities, particularly in soybeans, rapeseed, canola and sunflower, will allow for the development of new, innovative products that meet the increasing consumer demand for healthier, sustainable food options.

With the global plant-based protein market projected to grow significantly, Bunge's enhanced product offerings will likely cater to food manufacturers looking to incorporate high-quality, plant-derived ingredients into their formulations.

The integration of IFF's soy protein concentrate and lecithin products will enable Bunge to provide its customers with a broader range of ingredient solutions, enhancing their competitive edge in the food and beverage industry.

The acquisition comes at a time when the food and beverage industry is increasingly focused on health and wellness trends, clean label products and sustainable sourcing.

As companies navigate these evolving consumer preferences, Bunge's strategic acquisition positions it well to lead in the development of innovative food solutions.

As Bunge continues to integrate IFF's assets, industry stakeholders will be watching closely to see how this move impacts product innovation and market dynamics within the food ingredients sector.