Raisio plc, Stock exchange release, 14 May 2009 at 8 am Finnish time
BUNGE TO ACQUIRE RAISIO'S MARGARINE BUSINESS
Bunge and Raisio have signed an agreement on the sale of Raisio's margarine
business to Bunge. Bunge Limited is a global company that specialises in foods,
the processing and sale of agricultural commodities, as well as fertilizers. The
value of the transaction is EUR 80 million. The transaction will also make Bunge
a new and significant Benecol partner for Raisio.
The transaction will require the approval of the competition authorities. The
duration of authority processing will determine the timing of the transaction,
which is currently expected to take place in the third quarter. The buyer will
pay the acquisition price in cash. After tax and expenses the sales profit from
the divestment is expected to be some EUR 42 million. Raisio's equity ratio is
estimated to be about 72 per cent after the transaction.
Raisio's CEO Matti Rihko says: “The deal is an important step for Raisio towards
focusing on grain-based business. The price is also very good. The transaction
will bring Raisio a new, significant Benecol partner, who is looking to develop
Benecol and functional foods. The divestment will bring further clarity to
Raisio's focus: the company will concentrate on grain-based products.”
Rihko adds: “The margarine business has been put into good shape in the last two
years, making it a natural addition to Bunge, which is looking to leverage its
position in the Central and Northern European markets. As a global,
billion-dollar company, Bunge has both the will and ability to develop the
margarine business and to lead consolidation in a big sector. Raisio will
continue to sell margarine products as Bunge's partner in Finland, Sweden and
Estonia. In these countries Raisio's market position and net sales will remain
unchanged. In Poland, the transaction targets Raisio Polska Foods Sp. z o.o.;
Raisio will continue in grain-based snack business as a smaller, new company.
The net sales of Raisio Polska Foods' in 2008 were EUR 49 million.”
The transaction encompasses the margarine plants in Finland and Poland, as well
as several brands, the best known being Keiju, Makuisa, Masmix and Pyszny Duet.
Bunge will also have a licensing agreement concerning the Sunnuntai and
Carlshamn Mejeri brands. Around 330 of Raisio's Finnish and Polish employees
will be transferring to Bunge. The transaction doesn't effect on contract
cultivation of oil seeds in Finland.
Bunge Limited (www.Bunge.com, NYSE: BG) is a leading global agribusiness and
food company founded in 1818 and headquartered in White Plains, New York.
Bunge's over 25,000 employees in over 30 countries enhance lives by improving
the global agribusiness and food production chain. The company supplies
fertilizers to farmers in South America, originates, transports and processes
oilseeds, grains and other agricultural commodities worldwide, produces food
products for commercial customers and consumers and supplies raw materials and
services to the biofuels industry. The main product groups in the Bunge's foods
division are margarines, bottled vegetable oils and mayonnaise. The Group's
consolidated net sales in 2008 totalled USD 52.6 billion (EUR 39.6 billion). The
company has a strong market position in bottled vegetable oils in Europe and
also in margarines in Poland and Germany.
tel. +358 50 567 3060
Matti Rihko, CEO, Raisio plc, tel. +358 400 830 727
(assistant Teija Silomäki,
tel. +358 44 782 1272)
Henri Rieux, Vice President Corporate Affairs, Bunge Europe, tel. +41 22 592
Raisio will hold a press event in English on 14th May 2009 at 11.30 a.m. Finnish
time at Hotel Scandic Simonkenttä in the Bulsa-Freda meeting room. The address
is Simonkatu 9, Helsinki.
An event for analysts will be held on 14th May 2009 at 12.30 p.m. Finnish time
at Hotel Scandic Simonkenttä in the Bulsa-Freda meeting room. The address is
Simonkatu 9, Helsinki.