Flavours group Frutarom has moved to buy Chr. Hansen’s Italy-based savoury division.
The Israel-based flavour and ingredients company said today (26 May) that it had struck a deal to buy the unit for approximately US$35.2m.
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The division posted around US$24.3m in sales in 2010 with operating margin reaching 15%.
The unit produces flavours, seasoning compounds and functional ingredients for the food industry, with a focus on applications for processed meat and convenience food.
Frutarom said the division has an “extensive” customer base, including “leading” Italian meat processors, as well as companies in Russia, Ukraine, Poland, Czech Republic and France.
It said the move, which remains subject to competition clearance, will give it a “substantial presence” in Italy. Frutarom said its presence in Italy had been “slight” and “will serve as a platform on which to expand into this important market”.
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By GlobalData“The acquired activity holds significant market share in the fields of savoury flavours and processed meat in Italy, and it will strengthen Frutarom’s positioning among these customers while significantly increasing Frutarom’s local presence and market share in this important market,” said Frutarom president and CEO Ori Yehudai.
“The acquisition considerably boosts both Frutarom’s technological capabilities and its product offering to customers worldwide in the field of savoury flavours and functional products, as well as Frutarom’s extensive global customer base.”
Chr. Hansen described the deal as the sale of the “majority” of its “functional blends business”.
Executive vice president of global sales Carsten Hellman said the move was in line with the group’s overall strategy to “continuously optimise our business portfolio” and to “focus on and invest in areas where we already have – or can grow into – leading positions”.
He said the disposal would enable Chr. Hansen to “focus even more on building a strong global platform in the meat ingredients business with dedicated focus on meat cultures and natural colours”.
