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Cargill completes acquisition of Royal Nedalco

April 1, 2011
Cargill today completed its acquisition of Royal Nedalco's alcohol business from its parent company Royal Cosun, including its production sites in the Netherlands and the UK. Nedalco now becomes an integral part of Cargill's starches and sweeteners business in Europe.

Cargill and Nedalco – whose operating plants are adjacent to each other in both the Netherlands and the UK – have been business partners for many years. Cargill's wheat processing plants supply Nedalco with raw materials for its alcohol production process. This acquisition is therefore a natural extension and integration of the two companies' operations.

This deal involves Nedalco's head office in Bergen op Zoom (The Netherlands) along with its production plants in Manchester (UK) and Sas van Gent (The Netherlands). The two Nedalco plants produce about 1 million hectolitres of high quality potable and industrial alcohol per annum and employ approximately 100 people. For the Nedalco operations in Heilbronn (Germany) the due diligence process is still ongoing. Nedalco's technology development activities are not part of this transaction.

"We are looking forward to building on Nedalco's market-leading position at the high end of the potable and industrial alcohol market in Europe, by tapping into its excellent reputation and the expertise of its employees,"says Peter van Deursen, head of Cargill's starches and sweeteners business in Europe. "In addition, Nedalco's customers will receive access to Cargill's product offering and international services."

Nedalco's high-quality alcohol is used in multiple industrial applications in the spirit, food, pharmaceutical, chemical and cosmetics industries. For the spirit industry, the company's alcohol is used as a superior ingredient. In the non spirit segment, the alcohol has a wide range of applications, from flavours and perfumes to mouthwash, disinfectants and printing ink.
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