Lesaffre, an independent key global player in fermentation and microorganisms, announced the acquisition of a majority stake in Biorigin, a business unit of Zilor, a multinational company producing yeast derivative products, to enhance the supply of yeast derivatives for savory ingredients. The cooperation will improve production processes, logistics and services to the benefit of a global customer base.

As a result of the deal, Lesaffre will become the controlling shareholder of Biorigin with 70% of its total corporate capital, while Zilor will remain a shareholder with 30%. The deal includes Biorigin's production unit in Quatá/São Paulo, an industrial plant, based in the attractive country of Brazil where there is abundant sugar, water and renewable energy resources.

The aim of this deal is to leverage Lesaffre's and Biorigin's complementary capabilities to enable enhanced yeast derivative and savory ingredient solutions for customers worldwide. The business combination between Lesaffre and Biorigin will offer customers benefits by upgrading production capacity and new solutions based on the production and marketing of naturally derived ingredients for human food and animal nutrition industries.

For Brice-Audren Riché, chief executive officer of Lesaffre, said, "This acquisition of a majority stake in Biorigin represents an exciting new chapter for Lesaffre. It will offer development opportunities to meet the growing needs of the human food and nutrition industries, as society currently demands savory ingredients from natural sources. We are stepping up to a new dimension thanks to this strategic move to reinforce Lesaffre and its Business Unit Biospringer by Lesaffre as global players in the field of yeast extracts for the savory ingredients market. Importantly, we are doing this with a key strategic partner, Zilor, who shares similar values to Lesaffre and a strong focus on Corporate Social Responsibility. Committed to deliver responsible taste through Biospringer, and together with Biorigin, we are well-positioned to deliver enhanced yeast derivative and savory ingredient solutions to customers around the world."

For Fabiano Zillo, chief executive officer of Zilor, said, "Biorigin's 20-year history has been marked by innovation and commitment to sustainability. Throughout this time, Biorigin has built solid, long-term business partnerships, with great respect for its customers and other stakeholders. We believe this partnership will be a great opportunity to contribute to sustainable development and enhance the supply of yeast derivatives to the human food and animal nutrition markets. This deal will allow Biorigin to incorporate greater expertise, market insight and access to advanced R&D capabilities from Lesaffre and will allow Biorigin's parent company, Zilor, to join forces with a highly capable and experienced strategic partner."

Biorigin's brand will be kept for producing, marketing and selling the products.

The units in Lençóis Paulista (SP) and Macatuba (SP), and the products made from alcoholic fermentation yeast and brewer's yeast, manufactured at those locations will continue to be handled and sold by Zilor.

The deal is subject to the fulfillment of the usual preconditions for such transactions, including the approval from creditors and other legal and regulatory approvals, including the Administrative Council for Economic Defense (CADE), and it is expected to be concluded over the next few months.

Until then, Biorigin and Lesaffre shall remain totally independent, keeping their businesses as usual.