Abu Dhabi-based holding company ADQ, will acquire an indirect 45 percent equity share in Louis Dreyfus Company (LDC), a global merchant and processor of agricultural goods.
As part of the deal, LDC has also signed a long-term commercial supply agreement with ADQ for the sale of agri-commodities to the United Arab Emirates (UAE).
LDC is one of the leading agri-commodities merchants in the world, the company works in sourcing, processing, storing, transporting and merchandising agricultural goods around the globe.
According to reports, for the first half of 2020 LDC posted net sales of $16.3 billion and EBITDA from continuing operations of $634 million. With the completion of the deal, ADQ will invest a minimum of $800 million in the Agri company itself to support its long term business plan, which includes accelerating strategic investments across the value chain as it is transforming into an integrated food, feed, fibers and ingredients company.
“Food and agriculture is an attractive, core sector for ADQ to generate financial returns and strengthen the economic cluster locally. As one of the world’s leading agri-commodities and food companies, LDC represents a strategic investment opportunity for ADQ. With a diversified agri-commodity portfolio, significant scale and broad geographic footprint, LDC will further accelerate the progress we have already made this year in significantly expanding ADQ’s food and agriculture portfolio.”
With this new investment in LDC, ADQ’s food and agriculture portfolio will be more strengthened adding to the previous deals made including Silal, which aims to expand food sources and promote regionally grown and manufactured food, Agthia, a leading food and beverages company in the region and Al Foah, dates production and processing facility. Also, earlier this year the company has acquired 50 percent of Al Dahra Holdings.
“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. We are delighted to welcome ADQ to our shareholder group as long-term partners and investors,” says Margarita Louis-Dreyfus, Chairperson of the Supervisory Board of Louis Dreyfus Company Holdings.
Louis Dreyfus Company Holdings (LDC)
LDC is a global merchant firm founded in 1851 in the Netherlands. The company is mainly engaged in agriculture, food processing, international shipping and finance. The leading players of the Agri commodities sector in the world are active in over 100 countries and employ approximately 18,000 people.