LP Building Solutions’ Post

During the period 2001 to 2005, I gave several strategy presentations on De Beers Group to business schools and other interested groupings. The first one, of 2001 (https://lnkd.in/dukvP7cU ) talked about the separation of management and operational ties with Anglo American. The last one in 2005 (https://lnkd.in/d5743Ytn ) looked at the transition from a listed to a private company. The presentations in-between (all available on my SlideShare site: https://lnkd.in/dpePWU2h ) look at how the strategy unfolds. Perhaps, useful lessons seeing De Beers maybe looking at a change in corporate structure? My mother always said to me "learn the lessons of history". This maxim should hold true here. #diamonds #strategy

🤝Want to learn more about the growing demand for Food Chain Partnerships and how they’re helping scale #RegenerativeAgriculture? Kai Wirtz, Global Head of Food Chain Partnerships at Bayer, says more and more organizations are embracing full-systems transformation through partnerships. Learn more about Bayer’s vision for Food Chain Partnerships here: https://lnkd.in/gqUKkTjE

One key reason to invest with a margin of safety, as Ben Graham wrote, is to compensate for the potential of “worse than average luck.” How should Anheuser-Busch InBev shareholders be thinking about that after recent events? https://lnkd.in/e_WjWBZi $BUD #valueinvesting #valueinvestor

𝙆𝙤𝙘𝙝 𝙄𝙣𝙙𝙪𝙨𝙩𝙧𝙞𝙚𝙨 𝙍𝙚𝙗𝙧𝙖𝙣𝙙𝙨 𝙩𝙤 𝙍𝙚𝙛𝙡𝙚𝙘𝙩 𝘿𝙞𝙫𝙚𝙧𝙨𝙞𝙛𝙞𝙘𝙖𝙩𝙞𝙤𝙣 Koch Industries Inc., the second-largest privately held company in the U.S., is rebranding after nearly 60 years. The top-level holding company will now be known as 𝑲𝒐𝒄𝒉 𝑰𝒏𝒄., and a new financially rated subsidiary, 𝑲𝒐𝒄𝒉 𝑪𝒐𝒎𝒑𝒂𝒏𝒊𝒆𝒔 𝑳𝑳𝑪, will be established. This change will take effect in the third quarter. The Wichita, Kansas-based conglomerate, with annual revenues of approximately $125 billion, has diversified into oil refining, pipelines, commodities trading, ranching, and paper pulp. Charles Koch, co-CEO, owns 38% of the company and is ranked 22nd on the Bloomberg Billionaire Index. “We are no longer only an industrial company, but also a company involved in technology of all kinds,” the company stated. Koch Industries, under founder Fred Koch and continuing today, has been notably active in politics, supporting conservative causes with substantial funding. Recent leadership changes include the appointment of Dave Robertson as co-CEO. What do you think about Koch Industries' new direction? P.S. If you found this update interesting, consider resharing this post ♻️ and follow me for more industry news. https://lnkd.in/gyAmNdd6

Want to learn more about the growing demand for Food Chain Partnerships and how they’re helping scale #RegenerativeAgriculture? Kai Wirtz, Global Head of Food Chain Partnerships at Bayer, says more and more organizations are embracing full-systems transformation through partnerships. Learn more about Bayer’s vision for Food Chain Partnerships here: https://lnkd.in/gV3HWjgP

Want to learn more about how the food and ag industry is becoming more aligned in its approach to #RegenerativeAgriculture? Kai Wirtz, Global Head of Food Chain Partnerships at Bayer, says more and more organizations are embracing full-systems transformation through partnerships. Learn more about Bayer’s vision for Food Chain Partnerships here: https://lnkd.in/evXHWRkY

Want to learn more about how the food and ag industry is becoming more aligned in its approach to #RegenerativeAgriculture? Kai Wirtz, Global Head of Food Chain Partnerships at Bayer, says more and more organizations are embracing full-systems transformation through partnerships. Learn more about Bayer’s vision for Food Chain Partnerships here: https://lnkd.in/gFzdGAR7

Mondi/DS Smith Deal I'm delighted the Mondi/DS Smith Deal is happening. I have always believed the benefits to the industry are considerable. The global packaging market is experiencing a period of rationalization and consolidation and the deal is very much part of this. Exciting times for all stakeholders. customers and the drive towards the circular economy. Synergies and economies of scale will also accrue. Read more in Packaging Insights including my analysis.

Article reminded me of PE firms focused on providing growth equity. https://lnkd.in/g9eZPpjS

Tate & Lyle Acquires CP Kelco for $1.8 Billion - Tate & Lyle has announced the acquisition of CP Kelco, a leading provider of nature-based ingredient solutions, from J.M. Huber Corporation for $1.8 billion. This acquisition bolsters Tate & Lyle’s Sweetening, Mouthfeel, and Fortification platforms, enhancing their ability to meet the growing consumer demand for healthier and sustainable food and beverages. - The acquisition includes CP Kelco’s operations in the US, China, and Denmark. The transaction, valued on a cash-free, debt-free basis, is expected to be completed in Q4 2024. The deal aims to drive revenue growth and improve EBITDA margins, being accretive to adjusted earnings per share by the second full financial year post-completion. - The transaction involves $1.15 billion in cash from new and existing debt facilities, the issuance of 75 million new Tate & Lyle shares to Huber valued at approximately $645 million, and deferred consideration of up to 10 million additional shares. The acquisition is valued at ten times CP Kelco’s adjusted EBITDA for the year ending December 31, 2023, including expected cost synergies. - Combining Tate & Lyle’s strengths in Sweetening, Mouthfeel, and Fortification with CP Kelco’s expertise in pectin and specialty gums creates a robust portfolio of ingredients, enhancing their capability to offer comprehensive solutions. The deal is expected to generate significant synergies, including at least $50 million in cost savings by the second full financial year post-completion. - Huber will retain a 16% stake in Tate & Lyle, benefitting from the future growth of the combined businesses and appointing two non-executive directors to Tate & Lyle’s board. This transaction is expected to boost Tate & Lyle’s revenue growth towards the higher end of their 4-6% annual target, driven by increased consumer demand for healthier food and drink options. - The deal, led by Citi, Goldman Sachs, and Bank of America, requires Tate & Lyle shareholder approval and is subject to customary regulatory approvals, expected by the end of 2024. Tate & Lyle has also announced a $270 million share buyback program, utilizing proceeds from the sale of their remaining interest in Primient. #TateAndLyle #CPKelco #Acquisition #FoodAndBeverage #GrowthStrategy #FinancialSynergies #HealthyEating #InnovationInFood