DENMARK – Food ingredients company Chr. Hansen Natural Colors has announced its acquisition of food and beverage colours provider, Secna Natural Ingredients Group.
The deal marks Chr. Hansen Natural Colors’ first major transaction since being acquired by private equity firm EQT and becoming a standalone company.
Following the acquisition, Chr. Hansen Natural Colors will gain access to Secna Group’s pigment portfolio, which includes anthocyanins from black carrots and grape.
The Denmark based company will also expand its footprint in Spain, Italy and Turkey where Secna has an established presence.
Commenting on the partnership, Secna Group CEO Gabriel Muñoz said: “It’s a win–win situation as Chr. Hansen Natural Colors will add our strong pigment offerings in anthocyanins and caramel to their collection, while providing our valued customers and suppliers with access to their portfolio, technologies and market reach, which is the most extensive in the industry.”
The acquisition is timely as the natural food colors & flavors ingredient market size is estimated to be valued at US$5.0 billion in 2020 and projected to reach US$6.8 billion by 2025, recording a CAGR of 5.4%, according to Markets and Markets.
Markets and markets notes that growing demand for clean label products among the consumers is expected to drive the market while the European segment, where Chr. Hansen Natural colors has a strong presence, is poised to dominate the market due to its high population demanding natural ingredient infused food.
Odd Erik Hansen, CEO, Chr. Hansen Natural Colors, said: “This is the first of many exciting milestones for us as a standalone company. We look to enhance our value proposition and strengthen our operational platform together with the team at Secna at a time when demand for naturally sourced colours is increasing.”
Earlier, UK food ingredients supplier, Tate & Lyle confirmed its intentions to sell a controlling stake in its Primary Products unit to a new long-term financial partner, as it looks to focus on its Food and Beverage Solutions arm.
Although smaller compared to the primary products unit, Tate & Lyle says the F&B solutions unit delivers higher profit margins and has more growth potential than its sweeteners operation, as consumers turn to healthier eating options.
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