SWITZERLAND – Givaudan has announced that it has entered into an agreement to acquire 40.6% of the shares of Naturex, a French public listed company, for US$168 per share and a total consideration of US$648 million.

According to the company, this agreement is part of its 2020 strategy to strengthen its capabilities in natural flavour solutions for its customers and is subject to all of the appropriate regulatory approvals.

Givaudan also intends to launch a mandatory cash tender offer for all remaining outstanding shares of Naturex, at a price of US$168 per share.

Naturex is an international leader in plant extraction and the development of natural ingredients and solutions for the food, health and beauty sectors.

Headquartered in Avignon, France, Naturex reported sales of US$506 million in 2017, and operates from 16 production sites around the world and employing 1,700 people.

“The acquisition of a significant shareholding in Naturex fits fully with our 2020 strategy to expand our offering to deliver natural products to our customers.

Givaudan is the global leader in the space of natural flavours and Naturex further complements our capabilities with its strong portfolio of plant extracts and natural ingredients across the food and beverage, nutrition and health and personal care sectors.

We look forward to working with the management and shareholders of Naturex in the coming months to secure their support for the acquisition,” said Gilles Andrier, CEO of Givaudan.

Louie D’Amico, President Designate of Givaudan’s Flavour Division also said: “Consumers around the world are increasingly demanding more natural and organic products from food and beverage companies.

Naturex will be extremely complimentary to the acquisitions we have announced in this space over the last few years, namely Spicetec, Activ International, Vika and Centroflora Nutra.”