The deal whereby the US group consolidated its local oilseeds processing business in this county amounted to $54 million, $17 million in cash and the rest as redeemable non-controlling interest that Portugal’s Prio got in the newly formed oilseed processing joint venture.
Prio had opened the plant in Lehliu, some 60 km east of Bucharest, in 2011 after a EUR93 million greenfield investment.
“In conjunction with the formation of the venture, Bunge entered into an agreement to acquire the remaining 45% interest at either Bunge’s or the noncontrolling interest holder’s option in the future,” reads Bunge’s report, which values the non-controlling stake at $37 million.
The information in the report of the US company confirms ZF’s estimates made at the time of the deal and provides a price reference for the value of an oilseeds processing business.
Bunge officials did not comment on the information in the report by the time the story was ready for posting.
In the wake of this deal Bunge owns two vegetable oil plants in Romania, in Buzau and Lehliu. It also owns an oilseeds processing facility in Hungary.
Bunge posted EUR325 million revenue in 2011, down 13% on the previous year. It has not revealed 2012 results yet. The company owns the Floriol, Unisol, Ulvex and Raza Soarelui vegetable oil brands.
Prio Foods relinquished control of the Lehliu plant after only two years.
Bunge has been aggressive in Romania so far, taking over edible oil plants in Bucharest, Oradea and Iasi and closing them a while after. It took over the plant in Buzau, which is still operational, from agribusiness company Agricover in 2007.
Bunge competes with French-held Expur and Romanian-owned companies like Ulerom (Adrian Porumboiu) and Ardealul Carei (Mircea Lupsica) on a vegetable oil market estimated at EUR350 million to EUR400 million.
(English version by Loredana Fratila-Cristescu)