DENMARK/USA: Danisco acquires US flavour specialist
Florida Flavors is globally one of the top three flavour houses focusing on fruit flavours for the juice industry
As of yesterday Danisco has concluded an agreement for the purchase of the business of Florida Flavors Inc., headquartered in Lakeland, Florida, the USA.
Florida Flavors is a family-owned company specialising in R&D, production and marketing of natural citrus, apple and other fruit flavours and components derived from the named fruit (FTNF). The primary focus of Florida Flavors is on the food and beverage and related industries. Florida Flavors also produces citrus specialities and fragrance components as well as other natural fruit flavour compounds.
Expansion in the flavours business is part of Danisco´s growth strategy, and the acquisition of the Florida Flavors business gives Danisco the opportunity to broaden its product range and geographical coverage. Adding the citrus technology to Danisco´s product range makes the Group more attractive with a full line of beverage solutions.
Net sales of Florida Flavors were approx. USD 15 million (approx. EUR 16.5 million) in 2000 and the flavour house employs 45 people. The buyer has agreed not to publish the purchase price. However, the purchase price corresponds to approx. 9 times Florida Flavors´ EBITDA for the calendar year 2000. The acquisition is estimated to enhance earnings by 2003-04.
CEO of Danisco A/S, Alf Duch-Pedersen comments:
"Florida Flavors is a very successful and innovative business, and we look forward to strengthening our flavour business by this acquisition. In the period ahead, we will continue consolidating our position in the ingredients business by boosting organic growth and making additional acquisitions in line with our well defined growth strategy."
The strategy of Danisco is to be among the top-five global flavour houses. The market growth within the flavour market is around 4 per cent annually. The growth rate of Danisco within flavours is outperforming world market growth with a growth rate of over 10 per cent worldwide, and Danisco boasts growth rates of over 30 per cent in Asia. The beverage segment is an important business area for Danisco, but also flavours for the dairy, margarine, ice-cream, confectionery and baking markets are key areas. The world market for flavours is estimated at a value of around USD 5 billion. Danisco´s sales of flavours and related aroma ingredients exceed DKK 1 billion.
The bolt-on acquisition of the Florida Flavors business adds unique products and specialised know-how to Danisco´s range of flavour products and will give Florida Flavors access to Danisco´s unique global innovation and sales network.
President of Florida Flavors, Allen Kryger comments:
"Danisco enables us to realise our vision of becoming a global player in the citrus market. By aligning ourselves with Danisco we gain access to its resources and extended global innovation and sales network."
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