Anglo-Dutch consumer products group Unilever announced on Thursday that it intends to sell its international speciality oils and fats business, Loders Croklaan Group, as part of its 'Path to Growth' strategy, a drive to focus on core activities.
For the past two years, Unilever has cut the number of its brands to focus on top-selling brands to increase sales growth and margins. As part of that strategy, it has been shedding edible oil operations that mainly sell to third parties instead of supplying its own operations.
Loders Croklaan has traditionally supplied the confectionery and bakery industries but also has a division that focuses on supplying nutritional oils and fats to manufacturers. In a statement Unilever maintained that "the future of Loders Croklaan would be best served by a new parent company able to focus on the development of its full potential."
Loders Croklaan has factories in Wormerveer, near Amsterdam, and in Channahon, near Chicago, with smaller plants in Toronto and Cairo and sales offices in a further seven countries. The business employs some 600 people and in 2001 had sales of € 265 million.
A recent Reuters report suggested that Danish ingredients firm Aarhus Oliefabrik said it was interested in acquiring Loders Croklaan. Other companies that might be interested include US agribusiness giant Cargill and Sweden's Karlshamns.
Unilever has engaged Deutsche Bank to assist with the sale process.