Wide Open Agriculture has entered into an asset purchase agreement with Prolupin GmbH, a leading European lupin producer, in relation to the acquisition of Prolupin's assets for $4.2 million.
The acquisition is anticipated to transition WOA into the world’s largest lupin protein producer, gain immediate commercial scale manufacturing, unlock the ability to produce different types of lupin concentrates, and open up commercial opportunities in Europe.
Spanning over 25 years, Prolupin has been the global market leader in lupin protein isolate production. Established through the acquisition of patents generated from the Fraunhofer institute in 2010, Prolupin has built significant manufacturing capabilities in Germany and crafted products that have a wide range of commercial applications, particularly in the plant based dairy sector.
Wide Open Agriculture CEO Jay Albany said; “Our key goal as a company has been to bring Buntine Protein to market as quickly and cost efficiently as possible. This acquisition grants us immediate commercial production capacity in Europe, a dynamic environment for the development of plant-based protein products. This is a giant leap forward for WOA, our shareholders, and the industry at large.”
The acquisition offers WOA an immediate operational footprint in Europe through Prolupin’s state-ofthe-art manufacturing facility in Germany. This facility has the capacity to produce 500 tpa of lupin protein concentrate and will be upgraded to produce approximately 1000 tonnes per annum of WOA’s Buntine Protein with a modest investment of $3-5 million within 1-2 years.
WOA will explore multiple funding options for this equipment, with most relevant suppliers located nearby in Germany and expects commercial scale production of Buntine Protein within six months, rapidly moving up its timeline for global launch.
With a growing pipeline of potential customers, the WOA says it expects to quickly achieve high utilisation from the facility, and expected positive cashflow from initial Buntine Protein sales will potentially fund future investment at the facility.
Through this Acquisition, WOA is set to emerge as the foremost global lupin protein producer and acquire an experienced engineering team with decades of plant-based protein experience.
Prolupin’s technology will also diversify and enhance WOA’s lupin product catalogue, with the capability to produce protein-rich lupin isolates, a versatile protein concentrate in wet form and a nutritionally enriched lupin oil.
Prolupin also has an established reputation in the European plant-based dairy market, and WOA aims to harness its B2B network. Prolupin's existing ventures into alternative meat products and sports nutrition also provide fertile ground for WOA to further its reach and influence in the plant-based sector.
“The Acquisition of Prolupin is testament to our ambitious growth strategy and commitment to leading the shift towards sustainable, plant-based nutrition. By integrating Prolupin’s decades of expertise and innovative technologies, we are able to meet potential Buntine Protein demand faster and with a much lower capital investment,” said Albany.
Following the acquisition, WOA intends to focus decisively on a B2B-centric approach. With over 150 samples of Buntine Protein sent to large global ingredient and food manufacturing companies, the acquisition will give WOA the ability to supply potential groups with commercial scale quantities.
Prolupin’s 'LUVE' consumer brand which is on shelves across Europe, also offers WOA multiple strategic options ranging from potential licensing agreements with third-party stakeholders to an outright sale. The ultimate objective is to ensure a streamlined supply of B2B sales contracts for the Germany facility and bolster future production capacity.
Following signing of the asset purchase agreement on 6 October, WOA will take over operational responsibility for the production facility and related staff. WOA has agreed to pay a total of €2.6 million (AU$4.2 million) in cash to Prolupin for the acquisition.
