Soufflet Acquisition: Key Details, Impact, and What Comes Next

InVivo Group's acquisition of Soufflet Group marks a significant milestone in the agricultural sector. This strategic move, valued at EUR 2.2 billion, aims to bolster food sovereignty and create value for farmers and stakeholders. By combining their strengths, the new entity is poised to address economic, social, and ecological challenges, enhancing its competitive edge globally.

What Is Soufflet?

Soufflet Group, a key player in the agricultural sector, focuses on the processing and marketing of cereals. The company offers a range of products including malt, flour, and rice, catering to various industries such as brewing, baking, and food production. Soufflet's unique selling point lies in its integrated supply chain, ensuring quality and traceability from farm to finished product. This comprehensive approach sets it apart in the competitive market.

Who Acquired Soufflet?

InVivo is a leading cooperative group in the agricultural sector, driving the transition towards a resilient agricultural and food system. The company offers a range of products and services, including Bioline by InVivo, Soufflet Agriculture, Soufflet Vigne, Soufflet Malt, Episens, and Cordier. Operating in 38 countries with 15,000 employees, InVivo plays a pivotal role in promoting sustainable practices and innovations in agriculture and food production, making it a significant player in the European market.

When Was Soufflet Acquired?

InVivo completed the acquisition of Soufflet Group on December 9, 2021. This acquisition came at a time when the agricultural sector was undergoing significant transformations, with a strong emphasis on sustainability and food sovereignty. The timing also aligned with InVivo's strategic goals to enhance its competitive edge in the global market and to become a leading supplier of beer malt ingredients. The deal was supported by substantial investments and regulatory approvals, marking a pivotal moment in the industry.

Why Was Soufflet Acquired?

• Market Expansion: The acquisition of Soufflet Group significantly expands InVivo's market presence, making it one of Europe's leading agricultural players with revenues of nearly €10 billion and operations in 35 countries. This move enhances InVivo's capabilities across various sectors, including agriculture, malting, milling, ingredients, bakery, pastry, garden center and food retail, international grain trade, and wine.
• Technology Integration: InVivo is investing heavily in new technologies, digital technology, precision farming, biocontrol solutions, and innovation. The acquisition aims to accelerate the new agricultural revolution by focusing on the digitalization of agriculture, including precision farming and biotechnologies. A global cross-functional center for innovative and digital solutions is also part of the structure to transform InVivo’s businesses.
• Competitive Advantage: The merger strengthens InVivo's position as a driver of the agricultural and food transition, enhancing its ability to meet economic, social, and ecological challenges. The combined expertise and skills of both groups aim to make InVivo a global reference in innovative and digital solutions, positioning it towards future-oriented businesses and contributing to the economic growth and influence of French agriculture and agri-food globally.

Acquisition Terms

• Acquisition Price: EUR 2.2 billion (US$2.49 billion)
• Payment Method: The transaction was financed through a combination of Group equity, investment from KKR, Bpifrance, and Credit Agricole (EUR 440 million), proceeds from the sale of Neovia to ADM, and a bank loan of EUR 1.65 billion.
• Key Conditions or Agreements:
  • The acquisition was approved by European and international anti-trust authorities.
  • KKR, Bpifrance, and Credit Agricole acquired a majority stake in Malteries Soufflet.
  • InVivo is in exclusive negotiations with Avril for the sale of Soufflet Alimentaire.
  • Jean-Michel Soufflet will stay on during the transition until Jean-Francois Lepy takes charge of trading activities.
  • The integration program "# Oser Ensemble (Daring Together)" will be implemented to accelerate the 2030 by InVivo strategic plan.

Impact on Soufflet

The acquisition of Soufflet by InVivo has led to significant changes in operations and management. Jean-Michel Soufflet will remain during the transition period, with Jean-Francois Lepy set to take over trading activities. The integration process, guided by the #OserEnsemble program, aims to merge best practices from both entities, enhancing operational efficiency. This collaborative approach is designed to reassure and involve employees, ensuring a smooth transition and fostering a culture of shared expertise and innovation.

Product offerings and services have also seen a transformation. InVivo's ambition to become the world's top supplier of beer malt ingredients is a key focus, with plans to increase market share from 10% to 20%. The merger strengthens InVivo's position across various sectors, including agriculture, malting, milling, and more. Employee reactions have been positive, with the integration process emphasizing collaboration and innovation. Customers are expected to benefit from enhanced services and a stronger commitment to food sovereignty and sustainability.

For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.