Glanbia has agreed to acquire Flavor Producers LLC, a leading flavour platform in the US, for an initial consideration of $300 million plus deferred consideration.
Flavour Producers provides flavours and extracts to the food and beverage industries, with a focus on natural and organic ingredients. Glanbia will operate Flavor Producers within its Nutritional Solutions (NS) business.
Flavor Producers significantly expands NS’s flavours offering, bringing new capabilities in the attractive and growing natural and organic flavours market which are aligned with long term consumer trends.
Transaction highlights include:
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Flavor Producers is a leading independent flavours business in the US which represents a synergistic fit with the existing flavours capability of NS;
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Acquiring an established platform with a 40 year plus history, a strong team and a track record of innovation;
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Excellence in R&D and proprietary ingredients with best-in-class formulation capabilities. Extensive flavour library and vertical integration into flavour extracts, facilitating clean label solutions;
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Financially attractive margin and growth profile which will improve business mix within NS; and
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Consistent with Glanbia’s balanced capital allocation framework and retaining a strong financial position post transaction.
Commenting on the Transaction, Hugh McGuire, Chief Executive Officer of Glanbia said:
“I am delighted to announce the acquisition of Flavor Producers, which represents an important step in the continued growth of our Nutritional Solutions business. This acquisition builds on our existing flavours capability and positions us well to capture long term growth opportunities in the organic and natural flavours segments. M&A is an important part of our growth strategy and this transaction represents a further opportunity to scale our NS business, unlock synergies and acquire unique and complementary capabilities.”