German-based chemicals firm Degussa has announced that it has agreed to a buyout of its Fruit Systems business by US private equity company Speyside Equity.
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The purchase price has not been announced. The new business will operate under the name of Sweet Ovations and will be based in Philadelphia.
With sites in Philadelphia and Gardena in the US, Degussa Fruit Systems provides fruit preparations for the food industry. The focus of the business will remain the same: conventional- and aseptic-processed fruit preparations, flavours and syrups for yoghurt; bases, variegates, fruit purees and feature flavours for frozen desserts; premium, all-purpose, crème and low-moisture fillings and bases for baked goods; and smoothie bases, toppings, syrups, hot fudge and shake bases for the foodservice industry.
“As there are only a few market and cost synergies between the Fruit Systems product line and the other business lines of Degussa Food Ingredients, the business is being sold independently of the planned divestiture of the food ingredients business unit,” Degussa said.
