Corbion: completes acquisition of Bunge’s JV stake

Amsterdam / NL. (cb) Dutch Corbion NV announces that it has completed the acquisition from Bunge Limited of Bunge’s stake in the SB Renewable Oils joint venture (see b:eu on 2018-03-31).

Corbion has acquired Bunge’s 49.9 percent stake in SB Renewable Oils, a joint venture that operates a facility in Brazil, specializing in the production of algae ingredients, such as Omega 3 rich oil, for aquaculture and animal feed. Corbion now is 100 percent owner of the plant in Orindiúva, which employs around 170 staff.

«We are delighted to welcome the team in Orindiúva as part of our global family. They are a pivotal part of our Algae Ingredients business, the innovative platform we acquired last year. We are strongly committed to developing this line of business», said Tjerk de Ruiter, CEO Corbion.

Corbion has assumed Bunge’s share in the external debt of the joint venture, including accrued interest (BRL 57 million equates to USD 15 million[*]) and has repaid Bunge’s working capital loan (BRL 29 million equates to USD 8 million*). Additionally, a 5-year earn-out provision starting in 2021 has been agreed to. This earn-out is based on sales of AlgaPrime DHA, with a maximum present value of USD 20 million[**]. As the SB Renewable Oils plant is located adjacent to one of Bunge’s sugar mills, long term supply agreements have been secured regarding sugar and utilities. Approval by the relevant regulatory bodies in Brazil has been obtained.

Updated financial guidance

• All updated financial guidance based on IFRS figures
• All Ingredient Solutions guidance unchanged
• Corbion organic net sales growth in 2018-2021 period of 3-6 percent per annum (was: net sales including proportionately consolidated joint ventures growth of 3-6 percent per annum)
• Innovation Platforms net sales growth >20 percent per annum (was: 10-30 percent per annum including proportionately consolidated joint ventures)
• Innovation Platforms Ebitda approaching break-even in 2021 (was: Ebitda including proportionately consolidated joint ventures approaching break-even in 2021)
• Innovation Platforms 2018 Ebitda loss expected between EUR -40 million and EUR -35 million; 2019 Ebitda loss not expected to exceed EUR -35 million (was: maximum Ebitda including proportionately consolidated joint ventures loss is not expected to exceed EUR -35 million per annum for the years 2018 and 2019)
• Innovation Platforms recurring capex of EUR 20-30 million (was: recurring capex of EUR 20-30 million including proportional joint venture investments)

[*] Based on the BRL/USD exchange rate on 01 June 2018 of 3.7.
[**] A contingent liability based on the present value of the assumed 5 earn-out payments will be recorded on our balance sheet.