ADM buys Solae's isoflavone business

- Last updated on GMT

Related tags: Solae, Soy isoflavones, Soybean

Archer Daniels Midland said yesterday that it has acquired Solae's
global soy isoflavone business, including its entire portfolio of
US and foreign patents.

The deal allows the companies, thought to have a similar share in soy proteins, to settle a patent case relating to ADM's isoflavone concentrate Novosoy.

ADM is one of the leading suppliers of soy isoflavones along with Acatris and Solbar. Solae produces only small amounts of isoflavones but holds a sizeable chunk of intellectual property relating to isoflavones.

This led it to file a patent case against ADM and another firm in 2003 for infringing one of its isoflavone patents.

Ignace Debruyne, marketing manager of the American Soybean Association, told, that the deal was "a wise decision" for two companies of equal might in the soy industry to resolve what could become a costly legal battle.

The European divisions of both companies declined to comment on the announcement this morning. The value of the deal also remains private.

However Paul M. Graham, vice president of new business development for Solae, said in a statement: "The patent estate on which the settlement is based was a strategic investment for The Solae Company."

"It provides an outstanding return on investment, which will enable us to focus on our core strength as a global innovator in technology development and the research and application of soy protein and other characterizing ingredients."

ADM will supply Novasoy soy isoflavones to Solae's former customers. It also gains patent rights owned by Novogen, previously licensed to Solae.

Related topics: Proteins

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