Alfa Laval to acquire Desmet in an all-cash deal

Alfa Laval has signed an agreement to acquire Desmet, part of the Desmet Ballestra Group, a world leader in engineering and supplying processing plants and technologies for edible oils and biofuel sectors. The acquisition will strengthen Alfa Laval’s position in the renewable energy arena and complement its offering within edible oils. Closing is expected during the second quarter of this year.

Headquartered in Brussels, Belgium, Desmet employs around 1,000 people in Europe, India, Southeast Asia, North America and Latin America. The business to be acquired, currently a part of the Desmet Ballestra Group, had a turnover of approximately 300 million euros (USD$332.6 million) in 2021. The operational units and brands of Rosedowns and Stolz are included in the transaction. The Desmet Ballestra Group is currently owned by Financière DSBG, and ultimately controlled by Kartesia and Farallon.

The acquisition will operate as a standalone entity within the food and water division of Alfa Laval. It strengthens Alfa Laval’s position in the markets for edible oils, biofuels, and plant- and animal-based proteins for food and feed. The acquisition will be fully financed via cash. The acquisition will have a positive impact on earnings per share and be marginally decretive to Alfa Laval’s EBITDA margin.

“The acquisition will be an excellent fit for our offering of specialized processing equipment designed to increase both yield and quality of customers’ end products,” said Tom Erixon, president and CEO of Alfa Laval. “It will add know-how and expertise to accelerate future innovations within food, feed and biofuels—and strengthen our ability to support the transformation towards renewable fuels.”

Philippe Bayet, president of the Desmet Ballestra Group, added, “I am proud to have contributed to the successful development of sustainable innovations and now I am delighted for Desmet, Rosedowns and Stolz to join forces with Alfa Laval to continue to be a worldwide leader in the oils and fats industry, and continue to serve customers globally.”

In a joint statement, Laurent Bouvier, managing partner at Kartesia, and Philipp Strepp, managing director at Farallon Capital Europe LLP, said, “We are confident that the business is well-positioned to take advantage of the significant growth opportunities that lie ahead, particularly in the HVO pretreatment market. We believe that Alfa Laval is the natural strategic owner of Desmet, given their technological expertise and compatible culture.”