Strategic Acquisition by Groupe Berkem of Biopress, a French Producer of 100% Vegetable Oils and Proteins

03 Apr 2023 08:00 CEST

• Increases Groupe Berkem's plant extraction and processing capacity to over 8,000 tons per year

• Subsidiary ensuring local sourcing of plant raw materials to strengthen further the Group's value chain

• Strengthening of the Group's solutions across its many markets (nutritional supplements, cosmetics, paints and coatings, etc.)

• Access to significant new markets such as agri-food

Regulatory News:

Groupe Berkem, a leading player in bio-based chemistry (ISIN code: FR00140069V2 - Ticker: ALKEM) (Paris:ALKEM), today announced the completion of the acquisition of Biopress, a French producer of 100% natural vegetable oils and proteins.

Olivier FAHY, Chairman and CEO of Groupe Berkem stated: "Raw material sourcing has always been a real know-how for Groupe Berkem and, faced with an inflationary and geopolitically complex environment, we felt that it was necessary to internalize this ability through a dedicated subsidiary. With the acquisition of Biopress, Groupe Berkem now manages its supply of vegetable oils, essential raw materials for its extraction and formulation activities, while at the same time significantly increasing its storage capacity in the direct vicinity of its production facilities. Through local and 100% plant-based sourcing, we will strengthen our Health, Beauty & Nutrition, Industry and Construction & Materials business areas, which fully benefit from the recognized virtues of so-called technical vegetable oils and plant proteins. Finally, this acquisition gives us access to a new market, that of agri-food, where we intend to develop new sustainable solutions for manufacturers looking for naturalness.”

Located in Tonneins (Lot-et-Garonne), Biopress is one of the first French agri-food companies to specialize in the production of vegetable oils extracted from organic oil seeds from local farms. With properties similar to petroleum derivatives, while being renewable and biodegradable resources, vegetable oils can be used in a wide variety of applications such as cosmetics, coatings, inks, and lubricants. Also, the vegetable proteins contained in oil cakes, which result from the crushing process that is used to extract the oil from the seeds, are particularly prized in the nutraceutical field.

Strengthening and broadening of Groupe Berkem's offering

With this acquisition, Groupe Berkem is consolidating its offering in the "Health, Beauty & Nutrition" area of expertise and more specifically in the cosmetics market thanks to the virtues of its oils and the nutraceutical market because of the benefits provided by plant proteins. This transaction is fully in line with the acquisition of i.Bioceuticals, a North American distributor of nutritional supplements, announced on 16 February 2023, and paves the way for new opportunities for growth in this booming market¹ .

Surfactants derived from these vegetable oils are also used in numerous industrial applications, being particularly prized for their solubilizing, detergent, wetting and emulsifying properties. These products will therefore find applications in sectors already addressed by the Group. Finally, the integration of Biopress will provide Groupe Berkem with new commercial opportunities in the agri-food market.

Securing a local supply of raw materials

With this acquisition, Groupe Berkem adds to its value chain the sourcing of a raw material essential to its activity of integrating plant-based chemistry. The Group now benefits from a local supply of technical vegetable oils, as Biopress is geographically close to the Group's plant located in Gardonne, in the southwest of France. Biopress’ facilities also provide significant new storage space for the Group as it anticipates the future growth of its business. The Group can thus expand its production capacity and ensure the processing of more than 8,000 tons of plants per year.

Terms of the transaction

The integration of this company into the consolidated accounts of Groupe Berkem was completed on April 1, 2023. The acquisition of Biopress, effected by Berkem Développement (a wholly owned subsidiary of Groupe Berkem), was fully financed in cash and financed out of equity. The 11 employees of Biopress joined Groupe Berkem on April 1, 2023.

ABOUT BIOPRESS

Located in Lot-et-Garonne since its creation in 1987 and based in Tonneins since 1991, Biopress is historically the largest 100% organic oil mill in France in terms of its processing capacity. The main activities of the company are based on the production and processing of a range of oils for manufacturers and processors. The company is able to process approximately one million liters of oil per year, 80% of which is made from raw materials coming from the southwest of France. With a staff of 11 employees, Biopress also distributes a wide variety of by-products from the oil mill, such as oil cakes for animal feed, lecithins or vegetable proteins, which can be used in sectors as diverse as construction, cosmetics, nutraceuticals and especially agri-food.

ABOUT GROUPE BERKEM

Founded in 1993 by Olivier Fahy, Chairman and Chief Executive Officer, Groupe Berkem is a leading force in the bio-based chemicals market. Its mission is to advance the environmental transition of companies producing the chemicals used in everyday life (Construction & Materials, Health, Beauty & Nutrition, Hygiene & Protection, and Industry). By harnessing its expertise in both plant extraction and innovative formulations, Groupe Berkem has developed bio-based boosters—unique high-quality bio-based solutions augmenting the performance of synthetic molecules. Groupe Berkem achieved revenue of €51.8 million in 2022. The Group has almost 200 employees working at its head office (Blanquefort, Gironde) and three production facilities in Gardonne (Dordogne), La Teste-de-Buch (Gironde), and Chartres (Eure-et-Loir).

Groupe Berkem has been listed on Euronext Growth Paris since December 2021 (ISIN: FR00140069V2 – ALKEM).
www.groupeberkem.com

¹ Grand View Research, Functional Foods Market Size, Share & Trends Analysis Report By Ingredient, By Product, By Application, And Segment Forecasts, 2019 -2025

View source version on businesswire.com: https://www.businesswire.com/news/home/20230402005014/en/

Berkem Group
Olivier Fahy, Chief Executive Officer
Anthony Labrugnas, Chief Financial Officer
Tel: +33 (0)5 64 31 06 60
investisseurs@berkem.com

NewCap
Investor Relations
Mathilde Bohin / Nicolas Fossiez
Tel: +33 (0)1 44 71 94 94
Berkem@newcap.eu

NewCap
Media Relations
Nicolas Merigeau / Antoine Pacquier
Tel: +33 (0)1 44 71 94 94
Berkem@newcap.eu