Holding Company to Buy 45% Stake in Louis Dreyfus Company

A UAE-based holding company will take on a significant stake in the agribusiness and commodities trader.

Powder Bulk Solids Staff

November 12, 2020

2 Min Read
Holding Company to Buy 45% Stake in Louis Dreyfus Company

\Agricultural goods processor and merchant Louis Dreyfus Company (LDC) is shifting away full family ownership of the firm with the announcement Wednesday that Abu Dhabi-based holding company ADQ will acquire a 45% equity stake in the company.

“The transaction announced today constitutes a milestone in a decade-long strategy envisioned by the Supervisory Board, which started with the consolidation of LDC’s parent company’s shareholding,” Margarita Louis-Dreyfus, chairperson of Louis Dreyfus Company Holdings (LDCH), said in a statement. “We are delighted to welcome ADQ to our shareholder group as long-term partners and investors, with a common vision for LDC’s future, and experience that will bring further value to the business and support the group’s ambitions.”

ADQ’s portfolio currently includes agriculture and food. The holding company said it hopes to strengthen the economy of the United Arab Emirates (UAE) through the deal.

“As one of the world’s leading agri-commodities and good companies, LDC represents a strategic investment opportunity for ADQ, in line with our long-term food and agriculture investment strategy,” said H.E. Mohamed Hasan Alsuwaidi, CEO of ADQ, in the release. “We share LDC’s vision for future growth of the business, and look forward to partnering with LDC’s existing shareholders and management team to capitalize on the sector’s emerging growth opportunities, by accelerating LDC’s transformative growth strategy to move towards greater value chain integration – from producers to consumers.”

LDC will use $800 million from the proceeds to support its long-term business plan and strategy.

“Our strategy aims to leverage global consumption trends through investments in new business opportunities, as the company embraces more of the agricultural value chain to become an increasingly integrated food, feed, fibers, and ingredients company,” stated Michael Gelchie, Group CEO for LDC. “With a shared ambition for investment in innovations and technologies that can transform food and agricultural production, the investment potential created by the long-term partnership with ADQ brings additional strength to the pursuit of LDC’s strategic growth plans, building on the strong performance delivered in the first half of 2020.”

The deal will close following the completion of regulatory approvals and customary closing conditions.

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Powder Bulk Solids Staff

Established in 1983, Powder & Bulk Solids (PBS) serves industries that process, handle, and package dry particulate matter, including the food, chemical, and pharmaceutical markets.

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