BayWa acquires majority stake in Royal Ingredients

Squarefield acted as exclusive financial advisor to the shareholders of Royal Ingredients on the sale of a majority stake to BayWa

On 6 December 2018, our client Royal Ingredients (or “the Company”), a leading specialty trader of conventional and organic starches, vegetable proteins, grains and seeds to the global food and animal feed industries, signed an agreement to sell a 60% stake to BayWa Agri Supply & Trade (“BAST”), a division of German-headquartered BayWa, which is worldwide active in the international agricultural commodities trade and is Europe’s leading supplier of raw materials to the animal feed industry.

 

The acquisition is part of BAST’s strategy to expand its international range of specialty cereals and services. With the Company being represented all over the world and with promising products to add to BAST’s portfolio of specialties, the acquisition is expected to open up a wide range of opportunities for the further expansion of its business.

 

Royal Ingredients

Royal Ingredients was founded in 2007 in the Netherlands and today has distribution companies and representative offices in the USA, China, India, Hong Kong, Brazil, Colombia and Nigeria. The Company is a global supplier of starches and starch derivatives, vegetable proteins, fibres, grains and seeds and serves hundreds of customers all over the world with a focus on food manufacturers and distributors, the animal feed industry and paper and board manufacturers. For further information see www.royal-ingredients.com.

 

BayWa Agri Supply & Trade

The BAST division of BayWa, which is headquartered in Rotterdam, includes the companies Cefetra, Cefetra Feed Service, Tracomex, Thenergy, BioCore, Riveka, Evergrain, PremiumCrops and BayWa Marketing & Trading International BV. BAST is active worldwide in the international agricultural commodities trade and is Europe’s leading supplier of raw materials to the animal feed industry. Each year BAST trades around 26 million tonnes of agricultural commodities and in 2017 had a turnover of around EUR 5.9 billion.

SICCO HOLMAN AND BEN BROERSEN, MANAGING DIRECTORS OF THE COMPANY:  “With BAST and the BayWa Group, we benefit from a strong, solid partner with broad international sourcing and logistic expertise. Just like Royal Ingredients, BAST stands for stable and reliable processes across the value chain, with a focus on customer satisfaction.”

2019