Danisco sells flavours business to Firmenich

by Editor fleischwirtschaft.com
Friday, May 11, 2007

Danish food ingredients group Danisco has signed a deal to sell its flavours business to Swiss giant Firmenich for around $613 million.

The flavour category would have specialised in the production and development of natural and nature identical additives for aroma applying industries, and it gained an annual turnover of about $276 million.

The agreement will see Danisco focus on producing bio-ingredients, texturants and sweeteners but also keep an interest in flavours through a "strategic partnership" with Firmenich.

The two companies will work together to produce flavours for the food industry. According to Danisco the divestment of flavours should be seen as a value-creating and forward-looking initiative.

While Danisco has grown to become one of the top three players in bio-ingredients, texturants and sweeteners, the company admitted its position in flavours is "limited".

The closing of the transaction is expected to be complete in six weeks. The partnership with Danisco will be rolled out gradually during the months following the closure of the deal.