Kartik Kohli 2023-07-06 23:46:25
Mitsui & Co., Ltd. has agreed to acquire a 70% stake in Celanese Corp.’s subsidiary Nutrinova Netherlands BV (Amsterdam), a producer of functional food ingredients, for $472.5 million.
Following the acquisition, Nutrinova will become an equity method affiliate of Mitsui. The share purchase will be executed in the fiscal year ending March 2024 after the fulfilment of condition precedents, including obtaining the necessary approvals.
Under the terms of the agreement, the companies will form a food ingredients joint venture (JV) under the Nutrinova name. Celanese will contribute assets, technology and employees of its food ingredients business and retain a 30% stake in the JV.
The agreement combines the technology, product portfolio and backward integration of the Celanese food ingredients business with Mitsui’s long-standing positions across the food value chain in Asia and other regions, the companies said. Additionally, Celanese will continue to meet the full acetyls raw material needs of the Nutrinova JV under a long-term supply agreement.
Celanese said that forming the JV allows it to monetize most of that business in a value-accretive way and maintain the benefits of integration with the acetyl chain. “After consideration of closing expenses and transaction costs, an estimated net cash proceeds of approximately $450 million will be fully utilized to pay down debt, which is a meaningful step in the company’s deleveraging plan,” added Celanese.
Nutrinova is a leading producer of acesulfame potassium sweetener as well as sorbic acid and potassium sorbate preservatives.
Mitsui said that it has built a strong relationship with Celanese through the joint operation of a methanol business in the US. Through the investment in Nutrinova, Mitsui will strengthen its relationship with Celanese, it added.Mitsui also aims to expand the added value of its food and nutrition business cluster through collaboration between Nutrinova and Mitsui’s existing business.
Nutrinova in 2022 generated sales of $171 million and EBITDA of $46 million.
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