SWITZERLAND – Givaudan has completed the acquisition of 40.5% stake in Naturex, a French manufacturer of natural specialty ingredients for the food industry for US$648m.
As announced in March this year, Givaudan has confirmed the intention to launch a mandatory cash tender offer for all remaining outstanding shares of Naturex, at a price of US$168 per share.
FoodIngredientsFirst has reported that the Board of Directors of Naturex are set to meet to examine the proposed draft tender offered by Givaudan.
Givaudan had earlier indicated that the acquisition was part of its 2020 strategy in leveraging its capabilities in natural flavor solutions for its customers as well as becoming a market leader in natural extracts and ingredients.
Acquisition of Naturex complements Givaudan’s portfolio of flavor and fragrances as it offers expertise in plant extraction and development of natural ingredients and solutions for the food, health and beauty sectors.
Over the years, it has been expanding its reach into the increasingly-becoming food industry and some of the most salient ones were the acquisition of Swedish Oat Fiber and industrial activity of Haliburton International Foods in 2017.
Purchasing decisions in the flavor and ingredients category are driven by rising awareness on well-being and shift towards natural ingredients which are considered healthier and of better quality compared to the highly processed products.
Speaking to FoodIngredientsFirst, Peter B Wullschleger, Head Investor & Media Relations at Givaudan said, “In our 2020 strategy, we have defined additional growth areas beside the core business of flavors and fragrances.
These are naturals, integrated solutions, active cosmetic ingredients and local and regional customers.
Naturex is, therefore, a perfect strategic fit, it ticks all four boxes (growth areas). Givaudan continues to look for acquisitions that create value for our customers and shareholders.”
Givaudan has been on a spree of ‘perceptive’ acquisitions including Spicetec, Activ International, Vika and Centroflora Nutra even as demand for natural and organic products from companies rise.
In May, Givaudan completed the acquisition of the Nutrition Division of Centroflora Group (Centroflora Nutra) in a strategy to strengthen its presence in Brazil and further expand into the global space.
As we watch the wellness trend, manufacturers are reshaping their businesses to offer customers natural, authentic and great tasting products as well as help them overcome the transition challenges.
In one of what was considered as one of the world’s largest acquisitions, IFF completed US$7.1 billion acquisition of Frutarom to form a merged company with estimated US$5.3 billion in revenues in 2018.