May 23, 2011

Südzucker and ED&F Man to form strategic partnership

Südzucker AG Mannheim/Ochsenfurt, Mannheim, has reached an agreement with ED&F Man to acquire a 25% stake minus one share in the company.

The purchase price for this transaction amounts to US$255 million. This transaction gives Südzucker access to ED&F Man's global trading network and thus a platform for further expanding its own business outside Europe.

ED&F Man is a leading provider of various agricultural commodities throughout the world, such as sugar, coffee and molasses. In the sugar trade, ED&F Man is the world's second-largest dealer and handled about 8.5 million tonnes in 2010. ED&F Man also holds majority and minority interests in production and refining operations, the total capacity of which is about 2.5 million tonnes of sugar.

Both partners see the transaction as a basis for greater cooperation. Südzucker will bring to the table its industrial expertise and ED&F Man's contribution will be its global position also outside the sugar business, with corresponding international contacts. Synergies will arise, especially in the areas of sugar production and refining, raw sugar procurement, logistics optimisation as well as animal feed sales and distribution.

Südzucker's participation will strengthen ED&F Man's capital base, improve its growth perspectives and enable it to seize opportunities in the rapidly changing commodity markets. The transaction is still subject to approval by the antitrust authorities.