Givaudan has entered into an agreement to divest its processed and grated cheese business to St. Paul Group, a cheese specialist with premises in Belgium and the Netherlands.
The deal, which was made for an undisclosed sum, includes Givaudan’s processed cheese, analogue cheese, grated cheese and air-dried cheese activities.
The unit was acquired as part of Givaudan’s purchase of Dutch ingredients manufacturer Vika BV in 2017.
It reportedly contributed CHF 13.5 million ($13.9 million) to its flavour division sales in 2019, which recorded a total of CHF 3.4 billion ($3.5 billion).
Following the deal, Givaudan will retain the majority of its Vika BV business and will continue to offer cheese powder solutions, vegetable and meat fonds and stocks, as part of its natural dairy and savoury product portfolio.
Established in 1985, St. Paul Group is a family-owned company and supplier of cheese, analogue and vegan solutions for the food industry.
With the acquisition, St. Paul’s extends its customer base in ready meals, snacks and processed food and will strengthen its position in cheese solutions to offer a wider range of product formats.
“With the sale of our processed and grated cheese business we aim to strengthen the focus on our core business and continue to drive long-term shareholder value,” said Louie D’Amico, president of Givaudan’s flavour division.
He added: “We truly appreciate the contributions of our processed and grated cheese business employees and look forward to working with the St. Paul team to ensure a successful handover.”
Dieter Kuijl, CEO of St. Paul Group, said: “We are delighted with this transaction as it represents an attractive opportunity to further build St Paul’s customer base in ready meals, snacks and processed food. In addition, St Paul will now also be able to offer a wider range of products and applications.”
Last year, Givaudan agreed to acquire Ungerer & Company, the US-based flavour, fragrance and specialty ingredient company and Vietnamese flavours firm Golden Frog.
© FoodBev Media Ltd 2020