USA – Dutch multinational food ingredients company, Corbion has agreed to acquire Granotec do Brazil, a specialist in functional blends for the Brazilian bakery industry in a cash purchase deal estimated at US$45 million.
The transaction which involves all shares of Granotec do Brazil will see Corbion expand its Latin American business as well as deliver on its global growth strategy.
Headquartered in Curitiba, Paraná State, Brazil, Granotec do Brazil operates a production facility and a development center, employing around 120 staff.
In 2018, the company recorded sales of approximately US$26 million and an EBITDA of US$3.7 million.
The acquisition will be financed from existing Corbion debt facilities and will be integrated in Corbion’s existing Brazilian organization.
According to Corbion, the transaction is in line with its ‘Creating Sustainable Growth’ strategy which to expand the bakery business geographically and extending the North American Bakery solution provider model into Latin America.
“We have seen a continued positive development of our business in Latin America, and this acquisition will provide us with a platform to serve our customers even better,” said Corbion CEO Tjerk de Ruiter.
“Granotec do Brazil greatly complements Corbion’s capabilities and geographical footprint to provide sustainable ingredient solutions in this region.”
According to him, Granotec do Brazil greatly complements Corbion’s capabilities and geographical footprint to provide sustainable ingredient solutions in this region.
The transaction is expected to complete in the first half of 2019, subject to customary approvals.
Corbion, which is a key producer of bioingredient-based foods, chemicals derived from organic acids, and lactic acid-based solutions reported net sales of US$1.01 billion in 2018.
In 2017, the company completed acquisition of San Francisco-based TerraVia for US$20 million.
This added TerraVia’s broad and diverse platform centered on innovative food and specialty ingredients derived from microalgae to Corbion’s portfolio of specialty ingredients.