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Givaudan to acquire Spicetec Flavors & Seasonings as part of 2020 strategy
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Thursday, 26 May, 2016, 08 : 00 AM [IST]
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Geneva
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fiogf49gjkf0d Givaudan, the global leader in creation of fragrances and flavours, has announced that it is acquiring ConAgra Foods’ Spicetec Flavors & Seasonings business. The decision is made as a part of its 2020 strategy to strengthen capabilities in integrated solution.
As per a press release issued by the company, Spicetec offers a range of flavours, spices and savoury seasoning solutions to customers, primarily in North America and operates from locations in Omaha, Nebraska; Carol Stream, Illinois; and Cranbury, New Jersey; employing 280 people. The transaction is expected to add approximately US$185 million to the company’s revenue on a full year basis.
Gilles Andrier, CEO, Givaudan, said, “This acquisition fits with our 2020 strategy to expand our offering to deliver integrated solutions where flavour and taste play a key role. Spicetec brings complementary capabilities to Givaudan with its strong portfolio of spices, seasoning blends and natural solutions. We are delighted to welcome Spicetec’s employees to Givaudan; our high cultural fit will contribute greatly to a successful integration.”
Mauricio Graber, president, Givaudan’s Flavour Division, said, “Combining Givaudan’s leading flavour expertise with Spicetec’s portfolio of products will enable us to deliver a broader range of solutions to our customers in processed meats, savoury retail and food service. Furthermore, these additional capabilities will help us strengthen the breadth of our industry leading natural ingredients, flavour and taste solutions.”
The total purchase price is US$340 million, which Givaudan plans to fund from existing resources. As the planned transaction is structured as an asset deal, the amounts paid include tax benefits which are typical with this type of transaction. Final cash consideration will be subject to adjustments for working capital. The planned acquisition remains subject to formal approvals from the relevant antitrust authorities. The transaction is expected to close in the next 60-90 days.
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