Ohly has entered into a strategic partnership with Lallemand as it divests its yeast production site in Hutchinson, Minnesota, to the firm.
Germany-headquartered Ohly has transferred the ownership of the Hutchinson torula facility and associated torula whole cell business with immediate effect.
The divestiture follows a strategic review to find a partner to better utilise and sustainably secure the future of the Hutchinson site. Ohly will continue to operate within the US out of its Boyceville, Wisconsin, facility.
As part of the agreement, Lallemand and Ohly have entered into a long-term supply partnership to supply Ohly with cream raw material from Hutchinson for use in all downstream products at Boyceville.
Ohly CEO Ralf Fink said: “We are proud of the vital role that the Hutchinson site has played in enabling Ohly Americas to expand in the North American yeast market.
“We believe this transfer of ownership will yield important benefits for our partners, customers and employees by ensuring the continued delivery of whole cell yeast products to its existing customers whilst providing job security for the Hutchinson site team, whose valuable contributions we are deeply grateful for.”
Lars Asferg, president and GM of the Lallemand Bio-Ingredients business, added: “Lallemand is already a well-established global supplier of inactive yeast products for savoury and health food applications. The acquisition of the Hutchinson business will provide our new and existing customers with a wider choice of products and taste profiles and further develop our technology leadership. We are delighted to have formed a supply partnership with Ohly, demonstrating our long-term commitment to the specialty inactive yeast sector.”
Lallemand is a privately-owned Canadian group specialising in the research, development, production, marketing and distribution of yeast and bacteria. It has approximately 4,000 employees located in more than 40 countries.
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