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Cargill completes acquisition of alcohol business

By Jess Halliday , 01-Apr-2011

Cargill has completed its acquisition of Royal Nedalco’s alcohol business from Royal Cosun, giving a new home to a division of the refocused Dutch company.

Royal Cosun’s strategy is focus on processing of arable crops. Just yesterday it announced that it has agreed to sell its bakery ingredients division, Unifine, to Dawn Foods.

Cargill’s acquisition of Nedalco, for an undisclosed sum, will give new energy to the division.

“We are looking forward to building on Nedalco’s market-leading position at the high end of the potable and industrial alcohol market in Europe, by tapping into its excellent reputation and the expertise of its employees,” said Peter van Deursen, head of Cargill’s starches and sweeteners business in Europe.

“In addition, Nedalco’s customers will receive access to Cargill’s product offering and international services.”

The two companies already have a long history of working together, however, and are natural partners: their plants are adjacent to each other in The Netherlands and the UK, and Cargill’s wheat processing plants supply Nedalco with raw materials.

“This acquisition is therefore a natural extension and integration of the two companies’ operations,” said Cargill.

The alcohol produced by Nedalco is used in the spirit, food, pharmaceutical, chemical and cosmetics industries. In the non-spirit segment it is used in applications such as flavours and perfumes.

Due diligence

The completed deal announced today includes Nedalco’s head office in Bergen op Zoom and its production plans in Manchester and Sas van Gent. These two plants are said to employ 100 people between them, and produce about 1 million hectolitres of high quality potable and industrial alcohol a year.

The due diligence procedure for Nedalco operations in Heilbronn, Germany, is not yet complete.

Nedalco’s technology development activities are not part of this transaction.

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