Tessenderlo's Strategic Pivot: From Chemical Conglomerate to Long-Term Investor

Strategic Moves Beyond the Numbers

Tessenderlo Group's half-year report on August 27 was more than just a routine update. The company delivered solid financials—revenues of just under €1.5 billion and adjusted EBITDA of €176.8 million—but the real news was strategic. The CEO, Luc Tack, opened by walking through a series of transformative transactions, most notably a joint venture with Darling Ingredients and a $400 million investment in FMC Corporation.

Describing the JV, Tack said: “The JV will combine Darling Ingredients collagen and gelatin with our branded Rousselot -- with the branded Rousselot and our PB Leiner activities.” — Luc Tack, Chief Executive Officer (CEO) · 2026-08-27 This is a move to create a top-tier collagen-based health and nutrition company, with Tessenderlo holding 15% and Darling 85%. For Tessenderlo, it's a way to retain a stake in this business while unlocking value and partnering with a global scale player.

More striking is the FMC investment. The company is taking a 20% stake in FMC Corporation through a $400 million capital increase, positioning itself as a cornerstone investor in an agricultural input giant. CFO Miguel de Potter explained the rationale: “we have decided that it is better for us to invest capital in minority stake, let's say, from a listed company. like FMC, we have not restarted our buyback program, but we might do so in the coming months.” — Miguel Potter, Chief Financial Officer (CFO) · 2026-08-27 This is a departure from the company's previous capital allocation, which had focused on M&A and buybacks. Luc Tack had hinted at this philosophy in March: “So we have said we prudently use our balance sheet going forward, but always having in mind liquidity. And the difference is if you do an M&A transaction, you buy something and you have no liquidity anymore, you spend the money and you have to work within it.” — Luc Tack, CEO · 2026-03-30 The FMC investment reflects that thinking—keeping flexibility while backing a company with a promising pipeline of new molecules.

This strategy is not just about FMC; it's a broader redefinition of the group. Tessenderlo is positioning itself to have an industrial core and a financial investments arm, with minority stakes in listed entities that can be liquidated to fund opportunistic M&A. The JV with Darling similarly provides a stake in a larger entity while reducing capital intensity. Tack emphasized the underlying logic: “I think it is important that we understand that both crop protection and fertilizers, the businesses that we are in, contribute for 50% of all agriculture production worldwide.” — Luc Tack, Chief Executive Officer (CEO) · 2026-08-27 The move into FMC ties directly into this thesis, with the company betting on patented molecules and technological innovation.

Operational Headwinds and Adjustments

Not everything is smooth sailing. The company announced the closure of its Vilvoorde plant after a failed effort to sell it, with restructuring costs of approximately EUR 31 million. On T-Power, a six-month tolling agreement has been signed while management evaluates long-term options. Tack noted: “T-Power has proven again to be a very important asset in the Belgium landscape.” — Luc Tack, Chief Executive Officer (CEO) · 2026-08-27 He had previously said: “We are in full process of looking at all these options and hopefully this time next year, which will still be plenty of time, we will be able to shed some more light on this.” — Luc Tack, CEO · 2024-03-27

Persistent raw material pressures, particularly around sulfur sourcing, remain a recurring challenge, but the company's long-term supplier relationships have helped. The Picanol weaving machine business also faces headwinds from a weak yen and softer demand, though order intake is improving for the second half. The acquisition of Cinis Fertilizer's plant in Sweden is another sign of the group's ambitions in crop nutrition. Bought out of bankruptcy, the plant will produce sulphate of potash, a product Tessenderlo already makes at its Ham site. It adds to the company's organic growth portfolio, with ramp-up expected in Q1 2027. Similarly, the full acquisition of PB Leiner from its Brazilian partner strengthens the business that will be folded into the Darling JV.

Outlook and Positioning

Management upgraded its full-year outlook, expecting adjusted EBITDA to be 5-15% higher than last year's EUR 288 million. This confidence stems from strong performance in Agro and Bio-valorization, though Machines & Technologies remain under pressure. The group is clearly rebalancing its portfolio: the new investment arm, the JV in collagen, and the focus on high-value active ingredients.

In a final comment, Tack emphasized the company's long-term relationships:

So I would like to give as a final comment to the outstanding presentation from the Miguel is that we are a company with long-term relationships. Most of our biggest customers have been with us 10 years, 20 years.